The total amount of depreciation recorded against an asset over the entire time the asset has been owned:
A)Is referred to as depreciation expense.
B)Is referred to as accumulated depreciation.
C)Is shown on the income statement of the final period.
D)Is only recorded when the asset is disposed of.
E)Is referred to as an accrued asset.

Question

Quizplus · Accepted Answer

Accumulated depreciation is the total amount of depreciation recorded against an asset over the entire time the asset has been owned. This amount is shown on the balance sheet as a contra asset account and is used to reduce the carrying value of the asset. It is not the same as depreciation expense, which is the portion of the asset's cost that is expensed each period. The accumulated depreciation is only recorded over the lifetime of the asset and is not dependent on when the asset is disposed of. It is not an accrued asset, which is an asset that has been earned but not yet received.

The Total Amount of Depreciation Recorded Against an Asset Over