Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 8 - No. 45)
What is the impact of recording an adjusting entry for depreciation expense?
Increases assets and increases equity.
Decreases assets and decreases equity.
Increases assets and decreases liabilities.
Decreases liabilities and increases equity.
Explanation
Depreciation expense reduces the value of assets (accumulated depreciation) and reduces equity through the expense.
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