Making Provision for depreciation is an example of __________.

Increase in Asset & Owner's Liability

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Decrease in Asset & Owner's Liability

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Increase in Liability & Owner's Liability

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Decrease in Liability & Increase in Owner's Liability

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Increase in Liability & Decrease in Owner's Liability

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Solution

The correct option is B Decrease in Asset & Owner's Liability
Provision for depreciation means wherein the depreciation of an asset is accumulated in a different account called provision for depreciation.
Making a provision would decrease the asset and owner's equity.

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Making Provision for depreciation is an example of __________.

The correct option is B Decrease in Asset & Owner's LiabilityProvision for depreciation means wherein the depreciation of an asset is accumulated in a different account called provision for depreciation. Making a provision would decrease the asset and owner's equity.

The correct option is B Decrease in Asset & Owner's Liability
Provision for depreciation means wherein the depreciation of an asset is accumulated in a different account called provision for depreciation.
Making a provision would decrease the asset and owner's equity.