If a business has several types of long-term assets such as equipment, buildings, and trucks,
A) there should be only one accumulated depreciation account.
B) there should be separate accumulated depreciation accounts for each type of asset.
C) all the long-term asset accounts will be recorded in one general ledger account.
D) there won't be a need for an accumulated depreciation account.

Question

Quizplus · Accepted Answer

It is best to have separate accumulated depreciation accounts for each type of asset as it provides better tracking of the depreciation of each asset and allows for more accurate financial reporting.

If a Business Has Several Types of Long-Term Assets Such