The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense. This would

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Quizplus · Accepted Answer

The adjustment for depreciation involves debiting Depreciation Expense and crediting Accumulated Depreciation (not Equipment directly). This correct process does not overstate or understate assets directly nor does it overstate net income. The given statement is incorrect in its application, but none of the provided outcomes (A, B, C) directly result from the incorrect action described.

The Adjustment for Depreciation Was Credited to Equipment and Debited