what account is accumulated depreciation

Accumulated depreciation is a contra-asset account used in accounting to track the total depreciation of a company's fixed assets over time. This account records the cumulative depreciation expense applied to an asset since it was acquired. It reduces the asset’s original cost on the balance sheet, reflecting its current book value and remaining useful life. Understanding what account is accumulated depreciation is essential for accurate financial reporting, tax deductions, and asset management. Learn how this account helps businesses manage their assets and ensure transparency in their financial statements.