When adjusting for depreciation, which of the following is one effect of the adjustment?

Question

Quizplus · Accepted Answer

Depreciation expense reduces the book value of an asset because it allocates the cost of the asset over its useful life, reflecting the decrease in value as the asset is used. Accumulated depreciation increases with each depreciation expense, reducing the asset's book value on the balance sheet. The cost of the equipment does not change, and depreciation does not directly affect the market value of the equipment.

When Adjusting for Depreciation, Which of the Following Is One