The Accumulated Depreciation account is ________.
A) a record of the sum of all the depreciation expense recorded to date for a depreciable asset
B) the price quoted to the buyer of a used asset
C) a liability account
D) the expense account used to allocate the depreciable cost of an asset

Question

Quizplus · Accepted Answer

The Accumulated Depreciation account is a record of the sum of all the depreciation expense recorded to date for a depreciable asset. It is a contra-asset account and decreases the carrying value of the asset on the balance sheet. Option B is incorrect as it refers to the selling price of the asset, not the Accumulated Depreciation account. Option C is incorrect as Accumulated Depreciation is not a liability account. Option D is also incorrect as it refers to the depreciation expense account, not the Accumulated Depreciation account.

The Accumulated Depreciation Account Is ________