the accumulated depreciation account is

The accumulated depreciation account is a key component in accounting that tracks the total depreciation of a company's fixed assets over time. It reflects the reduction in value of assets due to wear and tear, obsolescence, or age. This account is used to separate the depreciation expense from the original cost of an asset, allowing businesses to calculate its net book value. The accumulated depreciation account helps ensure accurate financial reporting, improve tax calculations, and provide insight into asset management. Learn more about how this account plays a critical role in maintaining accurate financial statements and long-term asset planning.