Which of the Following Is a Characteristic of Accumulated Depreciation

question 75

Multiple Choice

Which of the following is a characteristic of accumulated depreciation account?

• A) Accumulated depreciation represents cash reserved for asset replacement.
• B) Accumulated depreciation account is a contra-liability account.
• C) Accumulated depreciation may be disclosed in the notes to the income statement.
• D) Accumulated depreciation is reported on the balance sheet as a deduction from the cost of the asset.

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Definitions:

Learning

Learning is the process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences, often as a result of study, experience, or teaching.

Temporary

Pertaining to a limited period of time; not permanent or enduring.

Permanent

Lasting or intended to last or remain unchanged indefinitely.

Alcohol

A psychoactive substance that can lead to dependence and various health issues when consumed in excessive amounts.