The depreciation of equipment will require an adjustment that results in:
A) total assets and total expenses increasing.
B) total assets increasing and total expenses decreasing.
C) total assets and revenue decreasing.
D) total assets decreasing and total expenses increasing.

Question

Quizplus · Accepted Answer

Depreciation expense increases the total expenses, reflecting the cost of using the equipment over time. This expense also decreases the book value of the equipment, thus reducing total assets.

The Depreciation of Equipment Will Require an Adjustment That Results