When a company records depreciation expense it debits:
A)liabilities and credits expenses.
B)expenses and credits cash.
C)expenses and credits a contra-asset account.
D)long-lived assets and credits expenses.

Question

Quizplus · Accepted Answer

Depreciation expense is recorded by debiting the depreciation expense account, which increases the expense on the income statement, and crediting a contra-asset account (such as accumulated depreciation), which reduces the book value of the asset on the balance sheet.

When a Company Records Depreciation Expense It Debits