Which of the following statements about the Accumulated Depreciation account are

Question

Which of the following statements about the Accumulated Depreciation account are true? (You may select more than one answer.) A. This contra-account is subtracted when determining total assets on the balance sheet. checked
B. It is a balance sheet account. checked
C. It is an income statement account. checked
D. Its balance increases each year. unanswered
E. It includes the depreciation of only the current accounting year. unanswered
F. Its balance decreases each year. unanswered Which of the following statements about the Accumulated Depreciation account are true? (You may select more than one answer.) A. This contra-account is subtracted when determining total assets on the balance sheet. checked
B. It is a balance sheet account. checked
C. It is an income statement account. checked
D. Its balance increases each year. unanswered
E. It includes the depreciation of only the current accounting year. unanswered
F. Its balance decreases each year. unanswered Which of the following statements about the Accumulated Depreciation account are true? (You may select more than one answer.) A. This contra-account is subtracted when determining total assets on the balance sheet. checked
B. It is a balance sheet account. checked
C. It is an income statement account. checked
D. Its balance increases each year. unanswered
E. It includes the depreciation of only the current accounting year. unanswered
F. Its balance decreases each year. unanswered

Explanation / Answer

Answer : Below statements are true-

A: This contra-account is subtracted when determining total assets on the balance sheet : TRUE Accumulated depreciation is a Contra-account and is subtracted from asset on the balance sheet.

B : It is a balance sheet account. Checked : True Accumulated depreciation is a Balance Sheet account.

D: Its balance increases each year. True : As we progress year on year amount of accumulated depreciation increases

Below statement are false

C: It is an income statement account. Checked : False this is not income statement account its balance sheet account.

E: It includes the depreciation of only the current accounting year. : False Accumulated depreciation include balance of depreciation charged to asset till date.

F: Its balance decreases each year. False - As we progress year on year amount of accumulated depreciation increases

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