Depreciation expense of $2,000.00 will cause:

Question

Quizplus · Accepted Answer

Depreciation expense represents the allocation of the cost of a long-term asset over its useful life. It is a non-cash expense, which means that it does not involve any outflow of cash. Instead, it reduces the value of the asset on the balance sheet and increases the amount of accumulated depreciation, which is a contra-asset account. Therefore, choice C is the correct answer, as it reflects the increase in accumulated depreciation by $2,000.

Depreciation Expense of $2,000.00 Will Cause