The sum of all the depreciation expense recorded to date for a depreciable asset is called ________.
A) book value
B) residual value
C) depreciation expense
D) accumulated depreciation

Question

Quizplus · Accepted Answer

Accumulated depreciation is the sum of all the depreciation expense recorded to date for a depreciable asset. A is incorrect because book value refers to the net amount at which the asset is carried on the balance sheet. B is incorrect because residual value refers to the estimated amount that the company expects to receive from the asset at the end of its useful life. C is incorrect because depreciation expense refers to the portion of an asset's cost that is depleted over time as a result of wear and tear or obsolescence.

The Sum of All the Depreciation Expense Recorded to Date