Which One of the Following is the Correct Accounting Entry, to record the Monthly Depreciation of a Building? Debit to Accumulated Depreciation Expense and Credit to Depreciation Expenses Building Debit to Building Expense and Credit to Accumulated Depreciation Building Debit to Depreciation Expense and Credit to Accumulated Depreciation Building Debit to Depreciation Expense and Credit to Building

Did you know that the concept of depreciation has roots that trace back to the early accounting practices in ancient civilizations? The Romans even had forms of accounting that allowed them to track wear and tear on their assets, which is essentially what depreciation is all about. As technology progressed, modern accounting standards formalized these practices to help businesses accurately represent the value of their assets over time. For practical use, understanding how to record depreciation can save businesses significant amounts of tax money. By correctly debiting Depreciation Expense and crediting Accumulated Depreciation, you're not just following the rules; you're proactively managing your finances. Remember, a well-kept depreciation schedule can also help in asset valuation, which becomes important when planning for asset replacement or when facing an audit!