On a balance sheet, Accumulated Depreciation-Equipment is reported:
A)as a contra-asset on the Balance Sheet.
B)as a liability on the Income Statement.
C)as an expense on the Income Statement.
D)as owner's equity on the Balance Sheet.

Question

Quizplus · Accepted Answer

Accumulated Depreciation-Equipment is reported as a contra-asset on the Balance Sheet, which means it is subtracted from the total value of the Equipment asset to reflect its decreasing value over time. It is not a liability, expense, or equity account as it represents a reduction in the value of the underlying asset.

On a Balance Sheet, Accumulated Depreciation-Equipment Is Reported