The Accumulated Depreciation account represents a cash fund available to replace plant assets.

Name: The Accumulated Depreciation account represents a cash fund available to replace plant assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Accumulated Depreciation account represents the total depreciation that has been recorded on plant assets over time. It is a contra asset account that is subtracted from the original cost of the asset to determine its current book value. It does not represent a cash fund available to replace the asset.

The Accumulated Depreciation Account Represents a Cash Fund Available to Replace