Asked by Sophia Deiro on Mar 10, 2024

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Accumulated Depreciation is a contra-asset account found on the income statement.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense since the asset was put into use.

Contra-Asset Account

An account shown on the balance sheet that reduces the value of a related asset, used for accumulated depreciation or allowances for doubtful accounts.

  • Comprehend the principles of contra-asset accounts and their correlation with financial statements.
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DP
Dhivya Pappa

Mar 10, 2024

Final Answer :
False
Explanation :
Accumulated Depreciation is a contra-asset account found on the balance sheet, not the income statement. It reduces the gross amount of fixed assets reported.