Accumulated Depreciation is used to reduce what type of account on the balance sheet?

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Accumulated Depreciation is used to reduce the value of Capital Assets or Fixed Assets on the balance sheet. It represents the total amount of depreciation that has been charged to these assets over their useful life. This reduces their book value and reflects their reduced value due to wear and tear, obsolescence or deterioration. Accumulated Depreciation is a contra-asset account, which means that it is directly subtracted from the asset account to arrive at the net book value. It is not used to reduce current assets, liabilities or owners' equity.

Accumulated Depreciation Is Used to Reduce What Type of Account