After the adjustment for depreciation has been made, the original cost of the equipment:
A) increases with a credit.
B) decreases with a debit.
C) remains the same.
D) is transferred to a liability.

Question

Quizplus · Accepted Answer

The original cost of the equipment remains the same after the adjustment for depreciation. Depreciation expense affects the accumulated depreciation account and the income statement, but the historical cost of the asset on the balance sheet remains unchanged.

After the Adjustment for Depreciation Has Been Made, the Original