Byrd Company experienced an accounting event that affected the elements of its financial statements as indicated below:

Which of the following accounting events could have caused these effects?
A)Recognized depletion expense under the units-of-production method.
B)Recognized depreciation expense under the double-declining-balance method.
C)Amortized patent cost under the straight-line method.
D)All of these answer choices are correct.

Question

Byrd Company experienced an accounting event that affected the elements of its financial statements as indicated below:

Which of the following accounting events could have caused these effects?
A)Recognized depletion expense under the units-of-production method. 
B)Recognized depreciation expense under the double-declining-balance method. 
C)Amortized patent cost under the straight-line method. 
D)All of these answer choices are correct.

Quizplus · Accepted Answer

Depletion expense,amortization expense,and depreciation expense all decrease assets and stockholder's equity (retained earnings).They also increase expenses,which decreases net income.They do not affect cash flows.

Byrd Company Experienced an Accounting Event That Affected the Elements