Accumulated depreciation represents funds set aside to buy new assets.

Name: Accumulated depreciation represents funds set aside to buy new assets.
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Accumulated depreciation is not a fund that is set aside to buy new assets. It is a contra asset account that shows the total amount of depreciation expense that has been charged against an asset since it was acquired. It represents the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.

Accumulated Depreciation Represents Funds Set Aside to Buy New Assets