Answer:
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:
Date Account Title Debit Credit
xxx Depreciation Expenses A/c 5,000
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
