The Accumulated depreciation account is:
A)an expense account.
B)a contra account to the asset being depreciated.
C)a record of the sum of all the depreciation recorded.
D)both a record of the sum of all the depreciation recorded and a contra account to the asset being depreciated.

Question

Quizplus · Accepted Answer

The Accumulated Depreciation account is both a record of the sum of all the depreciation recorded and a contra account to the asset being depreciated. It is used to track the total amount of depreciation expense that has been charged against an asset over its useful life. As a contra asset account, it is subtracted from the original cost of the asset on the balance sheet to determine the asset's net book value or carrying value.

The Accumulated Depreciation Account Is