At the end of the current accounting period,Ringgold Co.recorded depreciation of $15,000 on its equipment.What is the effect of this event on the company's balance sheet?

Question

Quizplus · Accepted Answer

Depreciation decreases assets (by increasing accumulated depreciation, a contra asset account) and stockholders' equity (retained earnings). It increases expenses, which decreases net income.

At the End of the Current Accounting Period,Ringgold Co