What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that reduces the value of an asset, therefore decreasing the asset side of the accounting equation. This decrease is balanced out by a decrease in shareholders' equity, as the net income for the period is lower due to the depreciation expense being recorded.

What Happens to the Accounting Equation When the Adjustment for Depreciation