Asked by Destiny Gutierrez on Jun 03, 2024
Verified
Accumulated Depreciation is a permanent account.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against the cost of a fixed asset, reducing its book value over time.
Permanent Account
An account that carries its ending balance over to the next accounting period, typically representing real accounts like assets, liabilities, and equity.
- Differentiate between accounts that are temporary and those that are permanent.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
True
Explanation :
Accumulated Depreciation is a contra asset account that is used to record the total amount of depreciation expense that has been charged on an asset from the time it was acquired to the date of the financial statement. It is a permanent account because its balance is carried forward from one accounting year to the next and it represents the cumulative amount of depreciation charged on the asset over its entire useful life.
Learning Objectives
- Differentiate between accounts that are temporary and those that are permanent.