In other words, depreciation reduces net income on the income statement, but it does not reduce the Cash account on the balance sheet. Depletion Expense and Amortization Expense are accounts similar to Depreciation Expense, as all three involve allocating the cost of a long-term asset to an expense over the useful .
Related posts to depreciation expense balance sheet
In accountancy, depreciation refers to two aspects of the same concept: The decrease in value of assets fair value depreciation The allocation of the cost of assets .
What is 'Depreciation' Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets .
Depreciation expense is the allocated portion of the cost of a company's fixed assets that is appropriate for the accounting period indicated on the company's income .
The accounting balance sheet is one of the major financial statements used by accountants and business owners. The other major financial statements are the income .