What effect will the following adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | }
\hline \text { Depreciation Expense } & 2,150 & \
\hline \text { Accumulated Depreciation } & & 2,150 \
\hline
\end{array}$$
A) increase net income
B) increase revenues
C) decrease expenses
D) decrease net book value

Question

What effect will the following adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } 
\hline \text { Depreciation Expense } & 2,150 & \
\hline \text { Accumulated Depreciation } & & 2,150 \
\hline
\end{array}$$
A) increase net income
B) increase revenues
C) decrease expenses
D) decrease net book value

Quizplus · Accepted Answer

The adjusting journal entry records depreciation expense, which increases accumulated depreciation and decreases the net book value of the asset.

What Effect Will the Following Adjusting Journal Entry Have on the Accounting