Is Depreciation a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, depreciation is not a current asset. A current asset is any asset that will provide an  economic benefit for or within one year. Depreciation refers to an accounting practice that expenses the cost of an item in regular intervals over its useful life. Since depreciation works to devalue items over periods longer than a year, it is not a current asset.

Is Depreciation a Current Asset FAQs

Is depreciation a current asset?

No, depreciation is not a current asset.

What is a current asset?

A current asset is any asset that will provide an economic benefit for or within one year.

What is depreciation?

Depreciation refers to an accounting practice that expenses the cost of an item at regular intervals over its useful life.

Why isn't appreciation a current asset?

Since depreciation works to devalue items over periods longer than a year, it is not a current asset.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.