The accumulated depreciation account represents a growing amount of cash to be used to replace the asset.

Question

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The accumulated depreciation account does not represent a growing amount of cash. It is a contra-asset account that represents the total amount of depreciation expense that has been charged to the asset over its useful life. This account has a credit balance and reduces the book value of the asset on the balance sheet.

The Accumulated Depreciation Account Represents a Growing Amount of Cash