Accumulated Depreciation Definition - What is Accumulated De

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Accounting Instruction, Help, & How To
Published at : 13 Nov 2020
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Accumulated depreciation definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Accumulated depreciation can be defined as: Cumulative sum of all depreciation expense recoded for an asset. Accumulated depreciation is usually related to fixed assets, long term asset that will be used into the future to help generate revenue. These assets are recorded at cost and that cost is depreciated over the useful life, depreciation allocating the cost over the time period the asset is used, deprecation being an accrual concept in accordance with the matching principle. Total deprecation for an asset over its useful life is accumulated and reported in accumulated depreciation, accumulated depreciation being a contra asset account. Book value is calculated as cost less accumulated depreciation.
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