Which one of the following is the correct classification of the type of account for accumulated depreciation?

Understand the Problem

The question is asking for the correct classification of the type of account associated with accumulated depreciation, which is a concept in accounting.

More Information

Accumulated depreciation reduces the total asset amount without affecting liabilities or equity directly. It shows how much of an asset's value has been used up.

Tips

A common mistake is thinking accumulated depreciation directly affects liabilities or equity, which it does not.

Sources

• Accumulated Depreciation: Everything You Need to Know - investopedia.com
• What Is Accumulated Depreciation? - Coursera - coursera.org
• Is Accumulated Depreciation an Asset? How to Calculate It? - freshbooks.com