Accounting for IGCSE & O level - Accounting Procedures (Section 21 - No. 25)
When a company correctly records depreciation expense, how does it affect the accounting equation?
Assets increase, and owner's equity increases.
Assets decrease, and owner's equity decreases.
Assets and liabilities increase.
Assets and liabilities decrease.
Explanation
Depreciation reduces the asset value and reduces net income, impacting equity.
Comments (0)
