A new accountant working for Astro Limited records $650 depreciation expense on store equipment at year end as follows: The effect of this entry is to
A)adjust the accounts correctly at year end.
B)understate expenses on the statement of income.
C)overstate the carrying amount of the depreciable assets at year end.
D)understate the carrying amount of the depreciable assets at year end.

Question

A new accountant working for Astro Limited records $650 depreciation expense on store equipment at year end as follows:  The effect of this entry is to
A)adjust the accounts correctly at year end. 
B)understate expenses on the statement of income. 
C)overstate the carrying amount of the depreciable assets at year end. 
D)understate the carrying amount of the depreciable assets at year end.

Quizplus · Accepted Answer

The Answer of A new accountant working for Astro Limited records $650 depreciation expense on store equipment at year end as follows:  The effect of this entry is to
A)adjust the accounts correctly at year end. 
B)understate expenses on the statement of income. 
C)overstate the carrying amount of the depreciable assets at year end. 
D)understate the carrying amount of the depreciable assets at year end.

A New Accountant Working for Astro Limited Records $650 Depreciation