Accumulated Depreciation Is a Contra Asset Account

question 173

True/False

Accumulated depreciation is a contra asset account.

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Definitions:

Erosion Cost

Costs that occur when the introduction of a new project or product negatively impacts the sales and profits of existing products.

Upgrade

The process of replacing a product with a newer version or installing a newer version of software to improve functionality or performance.

Repair

The action of fixing or restoring something that is broken or damaged back to its original condition.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more alternative investments, taking into account both the initial investment and the annual operating costs.