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what account is depreciation

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what account is depreciation

Depreciation is recorded in two accounts: the Depreciation Expense account and the Accumulated Depreciation account. The depreciation expense is an operating expense that appears on the income statement, reducing taxable income. The accumulated depreciation account is a contra asset account on the balance sheet, reducing the book value of the related asset (such as equipment or buildings) over its useful life. Together, these accounts help track the gradual decrease in asset value over time.
By: 360 Accounting Pro
01-Feb-2025 10:22 am
Business & Services
User Website : https://www.360accountingpro.com/blog/what-account-is-accumulated-depreciation-understanding-depreciation-in-accounting-with-360-accounting-pro-inc-

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