When making adjustments to plant asset accounts,

Question

Quizplus · Accepted Answer

When making adjustments to plant asset accounts, depreciation expense reduces net income. Option A and D are incorrect because the total dollar amount in the accumulated depreciation account or the current market value of the long-lived asset do not determine the amount of depreciation expense for the current accounting period. Option B is incorrect because depreciation expense is not added to the plant asset account, but rather it is subtracted as an expense.

When Making Adjustments to Plant Asset Accounts