Which of the following does not correctly describe an adjusting journal entry that debits depreciation expense and credits accumulated depreciation?

Question

Quizplus · Accepted Answer

An adjusting journal entry that debits depreciation expense and credits accumulated depreciation increases expenses and decreases net income, but it does not increase assets. Instead, it increases a contra-asset account (accumulated depreciation), which effectively decreases the book value of assets.

Which of the Following Does Not Correctly Describe an Adjusting