The total amount of depreciation recorded against an asset or group of assets during the entire time the asset or assets have 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

The total amount of depreciation recorded against an asset or group of assets during the entire time the asset or assets have been owned is referred to as accumulated depreciation. It is a contra-asset account and it appears on the balance sheet as a deduction from the original cost of the asset.

The Total Amount of Depreciation Recorded Against an Asset or Group