Asked by Donna Pollock on Apr 30, 2024
Verified
Depreciation Expense is reported on the balance sheet as an addition to the related asset.
Depreciation Expense
An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.
Balance Sheet
A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.
Related Asset
An asset that is related to or necessary for the operation or function of another asset.
- Familiarize oneself with the understanding and accounting procedures for depreciation.
Verified Answer
MJ
Michelle JiangMay 02, 2024
Final Answer :
False
Explanation :
Depreciation Expense is reported on the income statement as an expense, not on the balance sheet as an addition to the related asset. On the balance sheet, the related asset is reported net of its accumulated depreciation.
Learning Objectives
- Familiarize oneself with the understanding and accounting procedures for depreciation.