At the end of the current accounting period,Ringgold Co.recorded depreciation of $15,000 on its equipment.What is the effect of this entry on the company's balance sheet?
A)Decrease assets and increase liabilities
B)Decrease stockholders' equity and decrease assets
C)Decrease assets and increase stockholders' equity
D)Decrease stockholders' equity and increase liabilities

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