On the balance sheet,the cumulative amount of plant and equipment already expensed is reported in an account called
A)Accumulated Amortization.
B)Accumulated Depreciation.
C)Amortization Expense.
D)Depreciation Expense.

Question

Quizplus · Accepted Answer

Accumulated Depreciation is the account on the balance sheet that represents the cumulative amount of plant and equipment already expensed. It is usually paired with the fixed assets account and is subtracted from the original cost of the assets to determine the net book value. Amortization Expense and Depreciation Expense are income statement accounts that represent the current period's depreciation or amortization expense. Accumulated Amortization is not used for plant and equipment but for intangible assets.

On the Balance Sheet,the Cumulative Amount of Plant and Equipment