accumulated depreciation type of account

Learn about the accumulated depreciation type of account, a contra-asset account used in accounting to track the reduction in the value of fixed assets over time. This account accumulates the depreciation expense related to assets like buildings, machinery, and equipment. Understand how it works alongside the asset’s original cost to calculate its net book value on the balance sheet. Explore its role in financial reporting, tax preparation, and how businesses use it to manage long-term asset depreciation effectively.