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

This adjusting journal entry records depreciation expense, which increases expenses and increases accumulated depreciation. This does not affect revenues or directly change net income but decreases the net book value of the asset by increasing accumulated depreciation.

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