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When accountants recognize that an asset, such as equipment, has declined in value how is the accounting equation effected? a. Balance sheet assets are decreased
When accountants recognize that an asset, such as equipment, has declined in value how is the accounting equation effected?
a. Balance sheet assets are decreased and net income is decreased.
b. Accumulated depreciation is debited and depreciation expense is credited.
c. Net income and balance sheet assets are not effected because there is no cash expenditure related to the recognition.
d. Liabilities are increased to show the requirement to replace the asset. Net income is decreased.
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