The Accumulated Depreciation account allows us to reduce the carrying value of assets through depreciation,while maintaining the original cost of each asset in the accounting records.

Question

Quizplus · Accepted Answer

The purpose of Accumulated Depreciation is to account for the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors. This account is used to reduce the carrying value or book value of an asset, while the original cost of the asset remains the same in the accounting records. Therefore, the statement is true.

The Accumulated Depreciation Account Allows Us to Reduce the Carrying