Question

The method of depreciation is continued for long period of time according to​

Answer 1

Is Accumulated Depreciation a Current or Long-Term Asset? Accumulated depreciation is an asset account with a credit balance known as a long-term contra asset account that is reported on the balance sheet under the heading Property, Plant and Equipment.

Answer 2

Accumulated depreciation accounts, or counter assets, are asset accounts with a credit balance.

• It's called a counter asset account since it has a negative balance.
• Its goal is to bring the asset account into balance and bring it to a netbook value.
• It shows up on the balance sheet as a decrease in the reported gross quantity of fixed assets.
• Because the balances in the account do not provide economic value to the business over numerous reporting periods, accumulated depreciation is not an asset.
• The amount of economic value that has been consumed in the past is referred to as accumulated depreciation.