Accounting Manager Question:

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What is the difference between accumulated depreciation and depreciation expense?

Accounting Manager Interview Question
Accounting Manager Interview Question

Answer:

The difference between accumulated depreciation and depreciation expense is that

☛ Accumulated depreciation: It is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet
☛ Depreciation expense: It is the amount of depreciation that is reported on the income statement. Basically, it is the amount that corresponds only to the period of time indicated in the heading of the income statement.

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