On the balance sheet, the cumulative amount of depreciation expense recognized to date on a fixed asset is called:
A) accumulated amortization.
B) accumulated depreciation.
C) amortization expense.
D) depreciation expense.

Question

Quizplus · Accepted Answer

Accumulated depreciation is the cumulative amount of depreciation expense recognized to date on a fixed asset. It is recorded on the balance sheet as a contra asset account, which reduces the value of the corresponding fixed asset. Option A (accumulated amortization) is used for intangible assets, not fixed assets. Option C (amortization expense) and D (depreciation expense) refer to the current period's expense, not the accumulated amount.

On the Balance Sheet, the Cumulative Amount of Depreciation Expense