As accumulated depreciation is recorded, the book value
A) increases.
B) decreases.
C) remains the same.
D) is closed out.

Question

Quizplus · Accepted Answer

Accumulated depreciation is the sum of depreciation expense recorded for an asset over its useful life. As a result, accumulated depreciation has a cumulative effect of reducing the book value of the asset. Thus, as accumulated depreciation is recorded, the book value decreases.

As Accumulated Depreciation Is Recorded, the Book Value