Asked by
Ayano Tanaka
on Nov 14, 2024
Verified
Accumulated Depreciation is a liability account and has a normal credit account balance.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.
Liability Account
An accounting record that captures the amount of money a firm owes to outsiders, including debts and obligations.
Credit Account Balance
A credit account balance refers to the total amount of credit available in a person's or organization's account, after considering all debits and credits.
- Understand the fundamental concepts of accrual accounting, including the difference between accrual and cash basis accounting.
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Learning Objectives
- Understand the fundamental concepts of accrual accounting, including the difference between accrual and cash basis accounting.