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Is depreciation expense a positive on the income statement?

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Is depreciation expense a positive on the income statement?

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  1. It's a negative. Like any other expense, it's subtracted from revenue to arrive at the net income figure.


  2. it is exp for the company so that it will be negative effect on income statement

  3. Expenses show up as debits (left side of T account or positive) on the income statements. Income items are credits (right side of T account or negatives).

    It is necessary to do this in order for debits to equal credits and Assets to equal Liabilities and Owner's Equity.

    For example: Cash sale of $100 would be:

    Debit to Cash (an asset) and Credit to Sales (an income account)

    Depreciation on Machine of $1,000:

    Debit to Depreciation expense and credit to Accumulated depreciation (a contra asset account). Contra asset is an asset account that has a credit balance instead of a debit balance.

    When you close the books for the year, you credit all expense accounts and debit income summary. You then credit income summary for all income. a positive (debit balance) in the Income Summary account means you have a net income.

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