Asked by Charlease Jordan on Jun 16, 2024
Verified
Accumulated depreciation accounts are liability accounts.
Accumulated Depreciation Accounts
Balance sheet accounts representing the total depreciation of a company's fixed assets over their useful lives.
Liability Accounts
These accounts track what a company owes to others, such as loans, accounts payable, mortgages, and other debts.
- Comprehend the theory and financial handling of depreciation.
Verified Answer
RS
Rahela SinanagicJun 18, 2024
Final Answer :
False
Explanation :
Accumulated depreciation accounts are not liability accounts, they are contra-asset accounts. Their balance is used to reduce the overall value of the asset on the balance sheet.
Learning Objectives
- Comprehend the theory and financial handling of depreciation.