What is the effect of the adjusting entry for depreciation on the accounting equation?
A. Decrease assets; No effect on liabilities; Decrease stockholders' equity
B. Decrease assets; Decrease liabilities; No effect on stockholders' equity
C. Increase assets; No effect on liabilities; Increase stockholders' equity
D. No effect on assets; Decrease liabilities; Increase stockholders' equity
Answer: A
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Fill in the blank with correct word.
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