Accumulated depreciation on a balance sheet: is part of stockholders\' equity re

Question

Accumulated depreciation on a balance sheet:

is part of stockholders' equity

represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business

represents cash that will be used to replace worn out equipment.

recognizes the economic loss in value of an asset because of its age or use.

is part of stockholders' equity

represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business

represents cash that will be used to replace worn out equipment.

recognizes the economic loss in value of an asset because of its age or use.

Explanation / Answer

B) represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business

The accumulated depreciation is the total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet. Depreciation is the cost of assets is being used up.

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