The Accumulated depreciation account is:
A) a record of the sum of all the depreciation recorded.
B) a contra account to the asset being depreciated.
C) an expense account.
D) both a record of the sum of all the depreciation recorded and a contra account to the asset being depreciated.

Question

Quizplus · Accepted Answer

The Accumulated depreciation account is both a record of the sum of all the depreciation recorded and a contra account to the asset being depreciated. It is a contra account because it has a credit balance which offsets the debit balance of the asset being depreciated on the balance sheet. It is also a record of the total depreciation charged against the asset over its useful life. Therefore, option D is the correct choice. Option A and C are incorrect because accumulated depreciation is not an expense but rather a contra asset account. Option B is only partially correct because it is a contra account but it is also a record of all the depreciation recorded.

The Accumulated Depreciation Account Is