The adjusting entry for depreciation would include a:
A)debit to Accumulated depreciation and a credit to the asset.
B)debit to Depreciation expense and a credit to Accumulated depreciation.
C)debit to Accumulated depreciation and a credit to Depreciation expense.
D)debit to Depreciation expense and a credit to Cash.

Question

Quizplus · Accepted Answer

Depreciation expense is an expense that is reported on the income statement, while accumulated depreciation is a contra-asset account that has a credit balance and appears on the balance sheet. The adjusting entry for depreciation involves recognizing the expense (debit to Depreciation expense) and increasing the accumulated depreciation balance (credit to Accumulated depreciation) by the same amount. Therefore, the correct answer is B, which shows a debit to Depreciation expense and a credit to Accumulated depreciation.

The Adjusting Entry for Depreciation Would Include A