What is accumulated deprecation?

Answer 1

Accumulated depreciation is the total amount of depreciation expense that has been recorded against an asset since it was acquired. It reflects the reduction in the asset's book value over time due to wear and tear, obsolescence, or usage. This figure is subtracted from the asset's original cost on the balance sheet to determine its net book value. Accumulated depreciation is important for understanding an asset's current value and for accurate financial reporting.