A new accountant working for Frenchies Catering Company records $1,000 Depreciation Expense on service equipment as follows: Dr.Depreciation Expense 1,000
Cr) Cash 1,000
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.
Correct Answer:
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