When a Business Charges Depreciation on Its Non-Current Assets, What

Multiple Choice

When a business charges depreciation on its non-current assets, what are the effects on its assets, capital and liabilities?

A) Assets - no change; capital - increases; liabilities - decrease.
B) Assets - no change; capital - no change; liabilities - no change.
C) Assets - decrease; capital - decreases; liabilities - no change.
D) Assets - decrease; capital - no change; liabilities - increase.