The type of account and normal balance of Accumulated Depreciation is
A) asset, credit
B) asset, debit
C) contra asset, credit
D) contra asset, debit

Question

Quizplus · Accepted Answer

Accumulated Depreciation is a contra asset account, meaning it has an opposite balance to its related asset account. As depreciation is an expense that decreases the value of an asset, the balance of Accumulated Depreciation is a credit balance. Therefore, the correct choice is C) contra asset, credit.

The Type of Account and Normal Balance of Accumulated Depreciation