To which balance sheet grouping does the item 'accumulated depreciation on equipment' belong?
A) current asset
B) noncurrent asset
C) current liability
D) noncurrent liability.

Question

Quizplus · Accepted Answer

Accumulated depreciation on equipment is a contra-asset account that represents the cumulative amount of depreciation expense recognized on equipment over time. As a contra-asset account, it offsets the balance of the equipment asset account, which is a noncurrent asset. Therefore, accumulated depreciation on equipment belongs to the noncurrent asset balance sheet grouping.

To Which Balance Sheet Grouping Does the Item 'Accumulated Depreciation