What is the difference between depreciation expense and accumulated depreciation?

Depreciation expense is the depreciation entry in the current financial period in the Income Statement and accumulated depreciation is the sum of all depreciation since the purchase of the asset written off against the asset thereby reducing it's value in the balance sheet.

the different  is depreciation expense is reported on the income statement as any other normal business expense

accumulated depreciation is a running total of depreciation for an asset that is recorded on the balance sheet.

Expense is the charge for the period, and accumulated depreciation is where the depreciation charges to date have been accumulated, i.e. how much has been depreciated in total off a certain asset / class of assets.

Dep'n Expense is to Income Statement, while Accumulated Dep'n is to Balance Sheet.

Monthly Dep'n Expense becomes the Accumulated Dep'n through the passage of time unless there is a retirement or disposal of the asset, thus, Accumulated Dep'n related to that asset and the asset itself be removed from the Balance Sheet.

Depreciation expense is the depreciation of every month that charged to income statement which count on the value of the assets over the year of depreciation while accumulated depreciation is the total of the depreciation expenses that run over the assets every month which charged to balance sheet

Depreciation expense is direct expense.accumulated depreciation expense is calculated expense for depreciation

Depreciation expense is charged to Income statement whereas accumulated depreciation goes to the statement of financial position

depreciation expense is the consumption of assets for certain period

accumulated depreciation is the depreciation for more than one period

 

Th difference between depreciation expense and accumulated depreciation is that the 'Depreciation Expense' is expressed in monetary term for a financial year of an Asset on the Income Statement, where as 'Accumulated Depreciation' is a Contra entry relating to the total of all depreciation expenses relating to the long term assets. The accumated depreciation is a negative balance on the Balance Sheet as the Assets is shown its acquisition value on the Balance Sheet.

Depreciation Income Accountancy Accounting Expenses What is the difference between depreciation expense and accumulated depreciation? Mohammad Ashi - CMA candidate Mohammad Ashi - CMA candidate CMA Candidate Followers () - Votes (2) - Views () - Comments (0) Write Answer Ask a Question View Related Questions Answers Tracy Lee Sutherland Tracy Lee Sutherland , Head of Finance - Intern added new answer -2 months ago Depreciation expense is the depreciation entry in the current financial period in the Income Statement and accumulated depreciation is the sum of all depreciation since the purchase of the asset written off against the asset thereby reducing it's value in the balance sheet.

Depreciation expense is a debit item and accumulated depreciation is a reserve and its a credit  item.