the accumulated depreciation account:\n\na. is another term for depreciation expense.\nb. has a normal…
the accumulated depreciation account:\n\na. is another term for depreciation expense.\nb. has a normal balance which is the same as its companion account.\nc. represents the original cost of a plant asset.\nd. is a contra asset account.
Answer
Brief Explanations:
- Option A: Accumulated Depreciation is not the same as Depreciation Expense. Depreciation Expense is an income - statement account for the current - period's depreciation, while Accumulated Depreciation is a balance - sheet account that accumulates depreciation over time.
- Option B: Its companion account is a plant asset (e.g., Equipment, Building). Plant assets have a normal debit balance, and Accumulated Depreciation has a normal credit balance (opposite of its companion account).
- Option C: The original cost of a plant asset is recorded in the plant - asset account (e.g., Equipment account), not in Accumulated Depreciation.
- Option D: Accumulated Depreciation is a contra - asset account. It is subtracted from the related plant - asset account on the balance sheet to show the net book value of the plant asset.
Answer:
D. is a contra asset account.