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Basic Question 16 of 19
The entry to record depreciation on long-term assets ______
B. decreases current assets and increases expenses.
C. decreases total assets and decreases earnings before taxes.
D. increases earnings before taxes and increases tax expense.
E. decreases total assets and decreases expenses.
A. decreases total assets and increases net income.
B. decreases current assets and increases expenses.
C. decreases total assets and decreases earnings before taxes.
D. increases earnings before taxes and increases tax expense.
E. decreases total assets and decreases expenses.
User Contributed Comments 4
| User | Comment |
|---|---|
| kodali | doesn't B imply C |
| johasan | As for B, its addresses the current assets and not long term assets. |
| moneyguy | I thought so, too, kodali. Johasan is right. We have to read these questions carefully! |
| Inaganti6 | it's generally a case of what's what's MORE right. in this case long term assets are the issue not current assets and current assets are not subject to depreciation |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets
CFA® 2024 Level I Curriculum, Volume 2, Module 7.