Accounting · Accounting Equation
When a company records depreciation expense for the year, what is the immediate impact on its accounting equation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Assets increase and Liabilities decrease
- 2Assets increase and Equity increases
- 3Assets decrease and Equity decreases✓
- 4Assets decrease and Liabilities increase
Correct answer
Assets decrease and Equity decreases
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