The balance in the account Accumulated Depreciation, Equipment will:
A)be reported on the Statement of Owner's Equity.
B)will be reported on the Balance Sheet.
C)not appear on any financial statement.
D)be reported on the Income Statement.

Question

Quizplus · Accepted Answer

The account Accumulated Depreciation, Equipment is a contra-asset account and its balance represents the total depreciation charges against the Equipment account since it was acquired, therefore it reduces the value of the Equipment account. As a result, the balance in the Accumulated Depreciation, Equipment account should be reported on the balance sheet along with the Equipment account. It does not appear on the income statement or on the statement of owner's equity.

The Balance in the Account Accumulated Depreciation, Equipment Will