Golden rules of accounting what is depreciation what is accounts payable

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Depreciation is the allocation of the cost of an asset over its useful life. Accounts payable is the amount owed by a company to its suppliers for goods or services received.

Depreciation is a non-cash expense that reduces the value of an asset over time.
Accounts payable represents the amount a company owes to its suppliers for goods or services purchased on credit.
Depreciation is recorded on the income statement as an expense, while accounts payable is a liability on the balance sheet.
Example of depreciation: A company purchases a delivery truck for $50,000 and estimates its useful life to be 5 years. Each year, $10,000 would be recorded as depreciation expense.
Example of accounts payable: A company buys $1,000 worth of office supplies on credit. The $1,000 would be recorded as accounts payable until it is paid off.

Golden rules of accounting what is depreciation what is accounts payable

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