The total amount of depreciation recorded for an asset during the entire time the asset has been owned
A) Is not shown on the balance sheet
B) Is referred to as accumulated depreciation
C) Is shown on the income statement
D) Is shown on the statement of changes in equity
E) Is recorded in a liability account

Question

Quizplus · Accepted Answer

The total amount of depreciation recorded for an asset during the entire time the asset has been owned is referred to as accumulated depreciation. This is shown on the balance sheet as a deduction from the original cost of the asset to show the net book value. It is not shown on the income statement or recorded as a liability account. It may also be disclosed in the notes to the financial statements. It is not shown on the statement of changes in equity.

The Total Amount of Depreciation Recorded for an Asset During