Asked by Amane gebiraye on May 05, 2024
Verified
An accumulated depreciation account
A) is a contra-liability account.
B) increases on the debit side.
C) is offset against total assets on the balance sheet.
D) has a normal credit balance.
Accumulated Depreciation
The cumulative depreciation expense charged on a fixed asset throughout its useful life.
Contra-Liability
A liability account that is used to reduce the value of a related liability, not commonly used in accounting terminology.
Balance Sheet
A fiscal statement detailing a company's holdings, dues, and the portion owned by shareholders, recorded at a precise time.
- Recognize the classification of unearned revenue and accumulated depreciation in accounting records.
Verified Answer
MA
michael ayalaMay 10, 2024
Final Answer :
D
Explanation :
Accumulated depreciation is a contra-asset account and has a normal credit balance. It is used to record the total amount of depreciation expense that has been recognized on the company's fixed assets over time.
Learning Objectives
- Recognize the classification of unearned revenue and accumulated depreciation in accounting records.