At the end of the current accounting period, Rodgers Co. recorded depreciation of $25,000 on its equipment. The effect of this entry on the company's balance sheet is to:
A)decrease assets and increase liabilities.
B)decrease owners' equity and increase liabilities.
C)decrease assets and increase owners' equity.
D)decrease owners' equity and decrease assets.

Question

Quizplus · Accepted Answer

Depreciation decreases assets by increasing accumulated depreciation and increases expenses, which decreases owners' equity.

At the End of the Current Accounting Period, Rodgers Co