The total amount of depreciation recorded for an asset during the entire time the asset has been owned:
A)Is shown on the statement of changes in equity.
B)Is referred to as accumulated depreciation.
C)Is not shown on the balance sheet.
D)Is shown on the income statement.
E)Is recorded in a liability account.

Question

Quizplus · Accepted Answer

Accumulated depreciation is the total amount of depreciation recorded for an asset during the entire time the asset has been owned. It is recorded as a contra asset account on the balance sheet, and is used to reduce the carrying value of the asset.

The Total Amount of Depreciation Recorded for an Asset During