On a balance sheet,Accumulated Depreciation-Equipment is reported
A) as a deduction from the cost of the equipment.
B) as a liability.
C) as an expense.
D) as a deduction from the total of the assets.

Question

Quizplus · Accepted Answer

Accumulated Depreciation-Equipment represents the total amount of depreciation recorded on equipment, which is a reduction in the value of an asset over time due to wear and tear or obsolescence. It is reported as a deduction from the cost of the equipment, hence reducing the value of the asset on the balance sheet. This is done in order to accurately reflect the current market value of the equipment. It is not reported as a liability or expense, nor is it deducted from the total of the assets.

On a Balance Sheet,Accumulated Depreciation-Equipment Is Reported