Is depreciation an asset liability or equity?

Answer 1

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.

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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)

Answer 2

Neither. Depreciation expense is the systematic decrease in value of a fixed tangible asset.

Example

The company purchases a machine with a cost of 100,000 and a useful life of 10 years and no residual value. If the company allocates the cost to each useful life equally, then the yearly depreciation expense is 10,000.

Answer 3

The accumulated depreciation is a liability although it is netted off with the assets they relate to so they are shown in the asset part of the balance sheet.

The depreciation charge for the year is an expense and charged to the income statement.

Answer 4

it is an asset account but with a credit balance, referred to as a contra-account.