Question
At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
Total Liabilities
SG&A Expense
Total Assets
Accumulated Depreciation
Cash from Operations
1 point
12.
Question 12
A company sold a p
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
Total Liabilities
SG&A Expense
Total Assets
Accumulated Depreciation
Cash from Operations
1 point
12.
Question 12
A company sold a p
Answers
GPT-4o mini
The adjusting entry to record $5,000 of depreciation on the fleet of automobiles would specifically affect the following items:
1. **SG&A Expense**: Depreciation is typically recorded as an expense, and in this case, it would likely increase the SG&A (Selling, General, and Administrative) Expense since these cars are used by the sales force.
2. **Accumulated Depreciation**: This account represents the cumulative amount of depreciation expense that has been charged against the asset. The adjusting entry would increase the Accumulated Depreciation account by $5,000.
The following items would not be affected by the depreciation adjusting entry:
- **Total Liabilities**: Depreciation does not directly impact liabilities.
- **Total Assets**: Depreciation reduces the book value of the assets but does not change the total assets in the balance sheet; it shifts the value from the asset to accumulated depreciation.
- **Cash from Operations**: Depreciation is a non-cash expense, so it does not directly impact cash flows.
So, the correct answers are:
- **SG&A Expense**
- **Accumulated Depreciation**
1. **SG&A Expense**: Depreciation is typically recorded as an expense, and in this case, it would likely increase the SG&A (Selling, General, and Administrative) Expense since these cars are used by the sales force.
2. **Accumulated Depreciation**: This account represents the cumulative amount of depreciation expense that has been charged against the asset. The adjusting entry would increase the Accumulated Depreciation account by $5,000.
The following items would not be affected by the depreciation adjusting entry:
- **Total Liabilities**: Depreciation does not directly impact liabilities.
- **Total Assets**: Depreciation reduces the book value of the assets but does not change the total assets in the balance sheet; it shifts the value from the asset to accumulated depreciation.
- **Cash from Operations**: Depreciation is a non-cash expense, so it does not directly impact cash flows.
So, the correct answers are:
- **SG&A Expense**
- **Accumulated Depreciation**