A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows: $\begin{array}{lrr}
\text {Dr. \quad Depreciation Expense } &700\
\text { Cr. \quad Cash} &&700\
\end{array}$
The effect of this entry is to
A) adjust the accounts to their proper amounts on December 31.
B) understate total assets on the balance sheet as of December 31.
C) overstate the book value of the depreciable assets at December 31.
D) understate the book value of the depreciable assets as of December 31.

Question

A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows: $\begin{array}{lrr}
  \text {Dr. \quad Depreciation Expense   } &700\
 \text {  Cr. \quad Cash} &&700\
\end{array}$
 The effect of this entry is to
A) adjust the accounts to their proper amounts on December 31.
B) understate total assets on the balance sheet as of December 31.
C) overstate the book value of the depreciable assets at December 31.
D) understate the book value of the depreciable assets as of December 31.

Quizplus · Accepted Answer

The Answer of A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows: $\begin{array}{lrr}
  \text {Dr. \quad Depreciation Expense   } &700\
 \text {  Cr. \quad Cash} &&700\
\end{array}$
 The effect of this entry is to
A) adjust the accounts to their proper amounts on December 31.
B) understate total assets on the balance sheet as of December 31.
C) overstate the book value of the depreciable assets at December 31.
D) understate the book value of the depreciable assets as of December 31.

A New Accountant Working for Brady Company Records $700 Depreciation Dr. Depreciation Expense 700 Cr. Cash700\begin{array}{lrr} \text {Dr. \quad Depreciation Expense } &700\\ \text { Cr. \quad Cash} &&700\\\end{array}Dr. Depreciation Expense Cr. Cash​700​700​

A New Accountant Working for Brady Company Records $700 Depreciation $\begin{array}{lrr} \text {Dr. \quad Depreciation Expense } &700\\ \text { Cr. \quad Cash} &&700\\\end{array}$