Depreciation Which of the following correctly describes the depreciation process? Multiple Choice Wo company fails to record depreciation expense, the company's net income will be overstated and its contra- osset will be understated. By recording depreciation, each reporting period, total assets increase and an expense is incurred By recording depreciation each reporting period, total assets increase and an expense is incurred Recording accumulated depreciation will align an asset's net book value to its fair market value. The journal entry to record depreciation credits depreciation expense and debits accumulated depreciation Recording depreciation and testing an asset for impairment will achieve the same net book value for the asset