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shourya rathi
on Dec 05, 2024

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The journal entry to record depreciation expense decreases which of the following ratios?

A) Debt-to-equity.
B) Earnings per share.
C) Fixed asset turnover.
D) Quality of income.

Depreciation Expense

An accounting method that allocates the cost of a tangible or physical asset over its useful life.

Debt-to-Equity

A metric used to evaluate a company's financial leverage, calculated by dividing its total liabilities by its shareholders' equity.

Earnings Per Share

A company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

  • Understand the relationship between financial statements adjustments, such as depreciation and bad debt expense, and their impact on financial ratios.
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lauren wolfeDec 11, 2024
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