Which of the Following Is Not a Characteristic of Accumulated

question 78

Multiple Choice

Which of the following is not a characteristic of accumulated depreciation account?

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

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Definitions:

Quantity

A property that exists in a range of magnitudes and can be measured or quantified.

Quantity

The amount or number of a material or immaterial entity that is considered as a unit or in a measurable amount.

True Proposition

A statement that accurately describes a fact or situation, aligning with reality.

Subject Class

A group or category that shares certain characteristics, forming the subject of logical or philosophical analysis.