Asked by Brooke Thompson on Jul 16, 2024
Verified
Accumulated depreciation accounts are liability accounts.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since it was placed in service.
Liability Accounts
Accounts on the balance sheet that represent obligations of the company, including loans, accounts payable, mortgages, and accrued expenses.
- Comprehend the consequences of modifying entries on asset and liability accounts.
Verified Answer
SM
sofia munozJul 18, 2024
Final Answer :
False
Explanation :
Accumulated depreciation accounts are actually contra-asset accounts, not liability accounts. They are used to record the amount of depreciation that has been taken on an asset, which reduces its net book value.
Learning Objectives
- Comprehend the consequences of modifying entries on asset and liability accounts.
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