Question

Accumulated Depreciation is referred to as a ___________________ asset account because it offsets a related asset...

Accumulated Depreciation is referred to as a ___________________ asset account because it offsets a related asset account.

(I think the answer is Contra?)

Homework Answers

Answer #2
  • Accumulated depreciation is a contra-asset account, it offsets the value of the asset that is depreciating.
  • Accumulated depreciation is a negative balance reported on the balance sheet under the long-term assets.
  • Accumulated depreciation increases with the decrease in the fair value of the asset.
  • Purpose of the accumulated depreciation is to spread the total cost of an asset over its useful life.

Accumulated Depreciation is referred to as a ___contra___ asset account because it offsets a related asset account.

Answer is Contra.

answered by: anonymous
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