Asked by steven belizaire on May 01, 2024
Verified
The balance in the accumulated depreciation account is the sum of the depreciation expense recorded in past periods.
Accumulated Depreciation
The cumulative amount of depreciation expense recorded for an asset from the time it was purchased and deployed for use.
Depreciation Expense
An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption.
- Pinpoint the different kinds and aims of making adjusting entries in accounting, like accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Determine and delineate the typical kinds of accounts impacted by adjusting entries, including assets, liabilities, revenues, and expenses.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
The accumulated depreciation account is a contra asset account that represents the total amount of depreciation expense recorded in past periods for a specific asset or group of assets. This account is used to reduce the asset's book value and reflect its current net value on the balance sheet.
Learning Objectives
- Pinpoint the different kinds and aims of making adjusting entries in accounting, like accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Determine and delineate the typical kinds of accounts impacted by adjusting entries, including assets, liabilities, revenues, and expenses.