Accumulated depreciation on a balance sheet:
A)is part of stockholders' equity.
B)represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business.
C)represents cash that will be used to replace worn out equipment.
D)recognizes the economic loss in value of an asset because of its age or use.

Question

Quizplus · Accepted Answer

Accumulated depreciation represents the total amount of an asset's cost that has been expensed over its useful life, reflecting the portion of the asset that has been "used up" in operations.

Accumulated Depreciation on a Balance Sheet