Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 5)

Which of the following statements is true regarding the accumulated depreciation account?
It represents the original cost of the asset.
It increases with each depreciation entry.
It is a liability account.
It is used to determine the salvage value of the asset.

Explanation

Each time depreciation expense is recorded, accumulated depreciation increases.

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