0
no
Depreciation Expense is an expense on your Statement of Comprehensive Income (Profit and Loss Account)
The depreciation expense in the year would then reduce the value of the asset to which the depreciation relates.
If you have any further questions on this topic, please do not hesitate to contact me at info@hodgsons.co.uk
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With Regards to the Accounting Equation.
Equity (NAV)= Assets- Liabilities
Depreciation would be considered negative equity (as are all expenses) as they represent a decrease in the net asset value- or NAV- (not through transaction with the entities owner)
What else can I help you with?
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is cash an asset liability or equity?
asset equity
Are retained earnings an asset equity or liability?
asset equity
Is rent income a asset liability or owners equity?
asset liability
Is drawings an asset equity or liability account?
equity
Is cash an asset liability or owners equity?
asset
Is accumulated depreciation an owner's equity account?
No. It is a contra asset account
Is revenue an asset liability or owner's equity?
sales revenue is owner's equity
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
In accounting are wages considered liability or equity?
It is an asset.
Paid-in capital a asset or liability?
Neither, it is equity
Are dividends owner's equity or asset or liability or revenues?
If your divident is the result of your own investment, it is an asset. Divident payable is a liability.
