Nakia has a small accounting company with three employees. She buys each person a new computer every three years. The reduction in value of Nakia's older computers would be listed on a balance sheet as
A) asset decay.
B) accumulated depreciation.
C) asset decline.
D) inventory deterioration.
E) equipment downgrade.

Question

Quizplus · Accepted Answer

Accumulated depreciation is the correct term used on balance sheets to represent the reduction in value of tangible assets over time, such as computers, due to use and wear.

Nakia Has a Small Accounting Company with Three Employees