Accumulated Depreciation, Equipment, is shown as a(n)
A) expense on the income statement.
B) liability on the balance sheet.
C) deduction from net income on the statement of owner's equity.
D) contra account on the balance sheet.
E) addition to equipment on the balance sheet.

Question

Quizplus · Accepted Answer

Accumulated Depreciation, Equipment is a contra account that offsets the Equipment account on the balance sheet. It represents the total amount of depreciation expense that has been charged against the Equipment account over time. It is not an expense on the income statement, a liability on the balance sheet, a deduction from net income on the statement of owner's equity, or an addition to equipment on the balance sheet.

Accumulated Depreciation, Equipment, Is Shown as A(n)