Depreciation Expense vs. Accumulated Depreciation

Some people are confused by the accounts Depreciation Expense and Accumulated Depreciation, since they both contain the word "depreciation." These accounts are quite different, however: Depreciation Expense belongs on the Income Statement, whereas Accumulated Depreciation belongs on the Balance Sheet. Whereas Accumulated Depreciation is a contra-asset that reduces a company's assets (it is subtracted from Property, Plant, and Equipment), Depreciation Expense is an expense that reduces a company's profit.—
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[annec]

Your video is a life saver, now i understand the diff between the two! Thanks a lot!

[huangsharon]

It a big help, very clear and detail. Thank you very much!

[ryanadams]

Great video! Especially the example at 3:30.

[ariah]

cut it off right when it was getting good. Man really said, "I'm not getting into it"

[ansonhuang]

subscribed and liked, thank you so much!

[jhoshouse]

Michael, can you do a video on PBO, prior service costs, and retirement benefits? My accounting professor is 80 years old and no one knows what hes talking about 😂

[sandradecaires]

formula you use for straight line method and reducing balance method?

[Issicice]

Where did you get the 8000 thousand dollars from for the Deprecation of expense and Accumulated Depreciation? I Understand that Depreciation also goes on the income statement and Accumulated Depreciation goes on the balance sheet. I am just confused where you got your debited and credit number of 8 thousand dollars from the 40, 000 thousand dollars from purchasing the oven.

[Valentinotententen]

So, Depreciation isn’t depreciation, its epreciation which is a positive meaning asset, but they don’t call it epreciation they call it depreciation, which is weird and accumulated depreciation is just depreciation which means it depreciated in the total assets meaning a negative?

[shree]

Can someone help me out from this confusion..How can we identify depreciation or accumulated depreciation in a question?? If on the asset side of balance sheet we see depreciation is deducted from asset.. How can we identify whether it is depreciation or accumulated depreciation??