EFG Transportation Company uses the straight-line method to depreciate its delivery truck.Which of the following reflects how recognizing depreciation expense would affect the elements of the financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question

EFG Transportation Company uses the straight-line method to depreciate its delivery truck.Which of the following reflects how recognizing depreciation expense would affect the elements of the financial statements?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Depreciation expense is an asset use transaction that decreases assets and stockholders' equity (retained earnings).It increases expenses,which decreases net income.It does not affect the statement of cash flows.

EFG Transportation Company Uses the Straight-Line Method to Depreciate Its