Is depreciation is an asset liability or equity?

Anonymous

∙ 10y ago

Updated: 8/1/2022

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)

Kelli Prosacco ∙

Lvl 10

∙ 3y ago

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.

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