WHAT IS DEPRECIATION?
November 17, 2022
The definition of an Accumulated Depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life. There are 5 types of depreciation: Straight line it reports an equal depreciation expense each year throughout the entire useful life of the asset until the entire asset is depreciated to its salvage value. Other than that, Accumulated Depreciation also known as the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The accumulated depreciation appears on the balance sheet as a reduction from the gross amount of fixed assets reported. It might be list in several accumulated depreciation accounts, one for each fixed asset type.