Which statement relating to the accumulated depreciation account is correct?
A) It normally has a DR balance.
B) It provides information on the market value of the asset at a particular date.
C) It is classified as a liability in the balance sheet.
D) It reflects the portion of the cost of the asset that has been assigned as an expense since the date of purchase.

Question

Quizplus · Accepted Answer

The accumulated depreciation account reflects the portion of the cost of the asset that has been assigned as an expense since the date of purchase. It has a credit balance and is classified as a contra asset account in the balance sheet. It does not provide information on the market value of the asset at a particular date and is not classified as a liability.

Which Statement Relating to the Accumulated Depreciation Account Is Correct