Accumulated Depreciation Is Classified as A(n)

question 45

Multiple Choice

Accumulated depreciation is classified as a(n)

• A)asset account.
• B)liability account.
• C)contra asset account.
• D)contra liability account.
• E)equity account.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Retained Earnings

The portion of a company's profits that is kept or retained and saved for future use, reinvestment, or to pay debt.

Temporary Investments

Short-term investments in securities such as stocks and bonds, which a company plans to sell within a year.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.