What is the effect of the adjusting entry for Depreciation expense?
A)The entry decreases total liabilities and increases total expenses.
B)The entry decreases total assets and increases total expenses.
C)The entry increases total assets and increases total expenses.
D)The entry increases total liabilities and increases total expenses.

Question

Quizplus · Accepted Answer

The adjusting entry for depreciation expense decreases total assets by increasing accumulated depreciation (a contra-asset account) and increases total expenses by recording depreciation expense.

What Is the Effect of the Adjusting Entry for Depreciation