At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force. Which of the following items would be increased by this depreciation adjusting entry? (check all that apply) a. Cost of Goods Sold
b. Cash from Operations
c. Total Assets
d. Retained Earnings
e. Depreciation Expense

The answer is Option B and E which are Cash from operations and Depreciation expense

Explanation:

Solution

Given that:

The adjusted entry in recording depreciation is stated below:

DateAccount Title             DebitCredit

xxxDepreciation Expenses A/c5,000

Accumulated Depreciation A/c           5,000

Thus,

The Accumulated depreciation will increase or goes higher

Depreciation is on Automobile used by the sales force, The administrative  expenses with the selling General expenses will be increased.

Now,  the Depreciation  here is seen  as a Non- Cash Expense, and much later it will be included back in Net Income for computing Cash From Operation, so Cash From Operations would also be increased.

Therefore, the following items that would increase are Cash From Operation, Accumulated Depreciation, Depreciation expense

answerthe above statement is (true);