What is the accumulated depreciation?

Sum of all depreciation expenses of a fixed asset.

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Depreciation expenses.

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Cost of depletion of assets.

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Future value of fixed asset.

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Solution

The correct option is A Sum of all depreciation expenses of a fixed asset.
Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Accumulated depreciation is a contra asset account, meaning its natural balance is a credit that reduces the overall asset value.

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Similar questions

A fixed asset was bought for Rs. 5,000. Its accumulated depreciation is Rs. 3,000 and rate of depreciation is 20%. Calculate its depreciation expenses for the current accounting period using reducing balance method?

Under which depreciation method the amount of depreciation expense remains same throughout the useful life of a fixed asset?

Q. What is the result of depreciation of fixed assets?

Depreciation of fixed capital assets refers to :

Q. The balance of Fixed Assets of Falna Ltd. at W.D.V. at the end of

2013

and

2014

are Rs.

3, 60, 000

and Rs.

6, 00, 000

Accumulated depreciation on Fixed Assets for

2013

and

2014

are Rs.

1, 60, 000

and Rs.

1, 80, 000

. A machinery costing Rs.

20, 000

which is half depreciated is discarded and written off during

2006

, here the amount of purchase of fixed assets is ______________.

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