The entry to record depreciation includes a credit to the ________.
A)the Depreciation Payable account
B)the Cash account
C)the Accumulated Depreciation account
D)the Depreciation Expense account

Question

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Depreciation is the process of allocating the cost of a long-term asset over its useful life. The entry to record depreciation includes a credit to the Accumulated Depreciation account, which is a contra-asset account that reflects the total amount of depreciation expense charged to date against the asset. The debit entry is made to the Depreciation Expense account, which is an income statement account that is closed at the end of the accounting period. The Depreciation Payable account is not a valid account because depreciation is not a liability that is owed to another party. The Cash account is not involved in the entry because depreciation is a non-cash expense that does not require any cash outlay.

The Entry to Record Depreciation Includes a Credit to the ________