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The contra account that is used when recording and reporting the effects of depreciation is called amortization of assets. This account is used to reduce the dollar amount of the asset periodically over time to bring assets to current costs.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
Accumulated Depreciation
The contra account that is used when recording and reporting the effects of depreciation is called amortization of assets. This account is used to reduce the dollar amount of the asset periodically over time to bring assets to current costs.
is accumulated depreciation a contra account
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
It is a real contra account. The nominal account associated with depreciation is depreciation expense.
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
No. It is a contra asset account
Accumulated Depreciation
Accumulated Depreciation
Yes
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.
Accumulated depreciation is a contra-asset account and show in the asset section of the Balance Sheet. It is called contra-asset account because contrary to any asset account Acc. Dep. is a credit type of account. The offset of Accumulated depreciation is to Debit the expense account Depreciation.
No, even though accumulated depreciation has a credit balance, it is shown under assets. Accumulated depreciation is a contra T-account to a fixed tangible asset. For example, "Accumulated depreciation machines" is a contra T-account to "Machines". Contra T-accounts are presented together with the T-account they are connected with. Therefore, accumulated depreciation is shown on the debit side with assets. As it has a credit balance, the balance is subtracted. (The sign of a T-account 'flips' when the T-account is included on the opposite side on the balance sheet.)