Accumulated Depreciation is a(n)________ account and carries a normal ________ balance.
A) revenue; debit
B) expense; debit
C) contra asset; credit
D) liability; credit

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra asset account, which means it is used to reduce the value of the corresponding asset account. As such, it has a credit balance to offset the debit balance of the asset account. Option A is incorrect because revenue accounts have a credit balance. Option B is incorrect because expense accounts have a debit balance, not a credit balance. Option D is incorrect because liabilities have credit balances only if the company owes someone something, but accumulated depreciation does not represent an obligation to pay someone.

Accumulated Depreciation Is A(n)________ Account and Carries a Normal ________

Accumulated Depreciation Is A(n) Account and Carries a Normal