How is depreciation expense recorded over time?

• A. It is recorded as a credit over time.
• B. It is recorded as a debit over time.
• C. It has a zero balance.
• D. It is recorded as revenue.

Answer: (B)

Depreciation is an expense recognized over the asset’s useful life, so it carries a normal debit balance. In each period you record depreciation by debiting Depreciation Expense and crediting Accumulated Depreciation, a contra-asset that reduces the asset’s net book value on the balance sheet. This pairing shows the cost of using the asset on the income statement while gradually rebuilding the cumulative depreciation on the balance sheet.

So, the correct approach is to increase the expense with a debit (not a credit), and to accumulate the total depreciation separately via a credit to Accumulated Depreciation. It isn’t zero each period, and it isn’t revenue, since depreciation is a cost, not income.