For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
12 months' depreciation was charged on the office building.
A) An asset increased and another asset decreased.
B) An asset decreased and an expense increased.
C) An asset decreased and a liability decreased.
D) A liability increased and an expense increased.

Question

Quizplus · Accepted Answer

Depreciation on the office building decreases the value of the asset (building) and increases expenses (depreciation expense), impacting the accounting equation by reducing assets and increasing expenses.

For the Following Transaction,identify the Type of Change That Would