What do you know about Accumulated Depreciation ?

Question

Accepted Answer

Accumulated Depreciation is the total depreciation expense recognized for an asset over its useful life.

Accumulated Depreciation is a contra-asset account that is subtracted from the asset's cost to determine its net book value.
It represents the cumulative amount of depreciation expense recorded for an asset since its acquisition.
Accumulated Depreciation increases over time as depreciation expense is recognized.
It is shown on the balance sheet as a negative value.
For example, if a company purchased a vehicle for $20,000 and has recorded $5,000 in depreciation expense, the Accumulated Depreciation would be $5,000.
The net book value of the vehicle would then be $15,000 ($20,000 - $5,000).

Accepted Answer

Total Depreciation charged on an asset from the date of purchase till date

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