The original cost of equipment is not reduced by the amount of Depreciation Expense.

Name: The original cost of equipment is not reduced by the amount of Depreciation Expense.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation expense is recorded to allocate the cost of an asset over its useful life, but it does not directly reduce the original cost of the equipment on the balance sheet. Instead, it is accumulated in a separate account called Accumulated Depreciation.

The Original Cost of Equipment Is Not Reduced by the Amount