At the End of the Current Accounting Period, Ringgold Company

Multiple Choice

At the end of the current accounting period, Ringgold Company recorded depreciation of $15,000 on its equipment. What is the effect of this event on the company's balance sheet?

A) Decrease assets and increase liabilities
B) Decrease stockholders' equity and decrease assets
C) Decrease assets and increase stockholders' equity
D) Decrease stockholders' equity and increase liabilities