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

Question

Quizplus · Accepted Answer

The adjusting entry for Depreciation expense is a non-cash expense that reduces the value of an asset over its useful life. This means that the entry decreases the total value of assets and increases the total expenses. Therefore, option C is the correct choice.

What Is the Effect of the Adjusting Entry for Depreciation