Asked by Landrie Pierce on Jun 15, 2024
Verified
The Accumulated Depreciation account represents a cash fund available to replace property, plant, and equipment.
Accumulated Depreciation
The total amount of a tangible fixed asset's cost that has been allocated as depreciation expense since the asset was put into use.
Cash Fund
A cash fund is a reserve of liquid money that a business or individual keeps on hand for meeting short-term obligations or emergencies.
- Understand the concept and purpose of the Accumulated Depreciation account.
Verified Answer
MA
Mohamad ali El haririJun 15, 2024
Final Answer :
False
Explanation :
Accumulated Depreciation is a contra asset account that represents the total depreciation expense charged against an asset over its useful life, reducing its book value, not a cash fund.
Learning Objectives
- Understand the concept and purpose of the Accumulated Depreciation account.