The statement regarding accumulated depreciation that is true is:
A) It helps calculate the market value of an asset
B) It is classified as a liability
C) It reflects the portion of the cost of an asset that has been assigned as an expense
D) It is classified as an expense

Question

The statement regarding accumulated depreciation that is true is:
A) It helps calculate the market value of an asset
B) It is classified as a liability
C) It reflects the portion of the cost of an asset that has been assigned as an expense 
D) It is classified as an expense

Quizplus · Accepted Answer

Accumulated depreciation reflects the portion of the cost of an asset that has been assigned as an expense over its useful life. It is not classified as a liability or an expense, and it does not help calculate the market value of an asset.

The Statement Regarding Accumulated Depreciation That Is True Is