The transactions listed in the following questions occurred in a private, not-for-profit hospital during 20X8. For each transaction, indicate its effect on the hospital's statement of operations for the year ended December 31, 20X8.
Transaction: Depreciation expense was recorded for the year.
Effect on Statement of Operations:
A) Increases operating income.
B) Decreases operating income.
C) The transaction is reported on the statement of operations, but there is no effect on operating income.
D) The transaction is not reported on the statement of operations.

Question

Quizplus · Accepted Answer

Depreciation expense is an operating expense that reduces operating income on the statement of operations.

The Transactions Listed in the Following Questions Occurred in a Private