Depreciation is asset or liability?
Answers were Sorted based on User's Feedback
Answer / raturivikas
neither asset nor liability, its an expense
Is This Answer Correct ? | 33 Yes | 4 No |
Answer / bharath
it is neither an Asset or liability, it is a non trading
expense
Is This Answer Correct ? | 22 Yes | 5 No |
Answer / giri
Depreciation is a non-cash expense. So, it is added back
when calculating cash flow. When an asset depreciates fully
then from every years depreciated amount new assets can be
purchased.
Is This Answer Correct ? | 16 Yes | 1 No |
Answer / us
If you want to ask about Acumulated Depreciation than it is
a contra-Asset :) Most of the people think it as a liability
Is This Answer Correct ? | 11 Yes | 0 No |
Answer / nishi
Deprociation is not an asset and not a liability. it is a
expense, which decrease the value of our assets.
Is This Answer Correct ? | 7 Yes | 0 No |
Answer / sravanthi
Depreciation is neither asset nor liability. it's just a
charge against profits, which in long run is used to
purchase a new asset.
Depreciation means allocation of depreciable amount of an
asset over its estimates working life.
Is This Answer Correct ? | 8 Yes | 2 No |
Answer / sachin tapse
Depreciation is nominal account and is always debited to
P&L A/c. It is shown in B/s Asset side as "Fixed asset
less depreciation". So, it can't be asset nor liability
also it is a permanent and gradual decrease in the value of
asset(non-trading expense).
Is This Answer Correct ? | 7 Yes | 1 No |
Answer / manish
depriciation is neighter assets and liability it is non
trading ex.
Is This Answer Correct ? | 4 Yes | 0 No |
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