the accumulated depreciation account:\n\na. is another term for depreciation expense.\nb. represents the…
the accumulated depreciation account:\n\na. is another term for depreciation expense.\nb. represents the original cost of a plant asset.\nc. has a normal balance which is the same as its companion account.\nd. is a contra asset account.
Answer
Brief Explanations:
- Option A: Accumulated Depreciation is a balance - sheet account, while Depreciation Expense is an income - statement account. They are not the same.
- Option B: The original cost of a plant asset is shown in the asset account (e.g., Equipment, Building), not in the Accumulated Depreciation account.
- Option C: The normal balance of an asset account (e.g., Equipment) is a debit balance, while the normal balance of Accumulated Depreciation (a contra - asset) is a credit balance.
- Option D: Accumulated Depreciation is a contra - asset account. It is used to offset the cost of a plant asset on the balance sheet.
Answer:
D. is a contra asset account.