Question

Please no hand-written answers. I do not want to have to translate the answer.

On which financial statement would you record depreciation expense?

Answer 1

The depreciation expense is recorded on the income statement on the expenses side and on the balance sheet on asset side as contra account( accumulated depreciation) . The depreciation expense is not a cash expense, the depreciation expense does not affect the cash on the asset side.

The depreciation expense is recorded on the income statement (expense side) and the accumulated depreciation will be recorded in the balance sheet on asset side as contra account that reduces the amount of fixed assets.