Depreciation is classified as a(n):

Question

Quizplus · Accepted Answer

Depreciation is an expense that represents the decrease in the value of an asset over time, which is reported on the income statement. Option A is incorrect because depreciation is not a liability. Option C is incorrect because a contra asset account is used to offset the balance of an asset account, and depreciation does not create a separate contra asset account. Option D is incorrect because there is no such thing as a contra expense account.

Depreciation Is Classified as A(n)