Asked by YUEYING HUANG on Jun 12, 2024
Verified
The accumulated depreciation account is closed to the retained earnings account.
Accumulated Depreciation
Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.
Retained Earnings
The amount of net income left over for a business after it has paid out dividends to its shareholders.
- Explain the nature of accumulated depreciation in accounting records.
Verified Answer
SE
Sriram EthakotaJun 12, 2024
Final Answer :
False
Explanation :
Accumulated depreciation is a contra asset account and is not closed to the retained earnings account; instead, it accumulates the depreciation expense over the years, reducing the book value of the asset it is associated with.
Learning Objectives
- Explain the nature of accumulated depreciation in accounting records.