Which entry increases accumulated depreciation?

Which entry increases accumulated depreciation?

• A. Credit Accumulated Depreciation
• B. Debit Accumulated Depreciation
• C. Debit Cash
• D. Credit Revenue

Answer: (A)

Accumulated depreciation is a contra-asset account that reduces the book value of assets. Since assets normally carry a debit balance, increases to a contra-asset appear on the credit side. When depreciation is recorded, the usual entry is Debit Depreciation Expense and Credit Accumulated Depreciation. Therefore, the entry that increases accumulated depreciation is a credit to this account. Debiting it would decrease the balance, and the other options (debitting cash or crediting revenue) do not affect accumulated depreciation.

Accumulated depreciation is a contra-asset account that reduces the book value of assets. Since assets normally carry a debit balance, increases to a contra-asset appear on the credit side. When depreciation is recorded, the usual entry is Debit Depreciation Expense and Credit Accumulated Depreciation. Therefore, the entry that increases accumulated depreciation is a credit to this account. Debiting it would decrease the balance, and the other options (debitting cash or crediting revenue) do not affect accumulated depreciation.