Which of the following is a true statement about depreciation expense when recorded?

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Multiple Choice

Which of the following is a true statement about depreciation expense when recorded?

Explanation:
Expenses carry a normal debit balance, and depreciation expense is an expense account. When you record depreciation, you debit the depreciation expense to recognize the period’s expense, and you credit accumulated depreciation, a contra-asset that reduces the asset’s net book value on the balance sheet. This makes the statement true: depreciation expense is normally a debit. It isn’t an asset or a liability, and the credit side goes to accumulated depreciation, not to the expense itself.

Expenses carry a normal debit balance, and depreciation expense is an expense account. When you record depreciation, you debit the depreciation expense to recognize the period’s expense, and you credit accumulated depreciation, a contra-asset that reduces the asset’s net book value on the balance sheet. This makes the statement true: depreciation expense is normally a debit. It isn’t an asset or a liability, and the credit side goes to accumulated depreciation, not to the expense itself.

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