Question

Accumulated Depreciation account has a _____________.

• A. Credit Balance only
• B. Debit Balance only
• C. Credit or Debit balance
• D. All of the above

Answer 1

The correct option is A Credit Balance only

Accumulated depreciation is a contra asset. Since assets have a normal debit balance, this would make accumulated depreciation have a normal credit balance. This account should be a credit balance as it is a contra-asset account.