Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions: 6

Answer

The balance in accumulated depreciation is the total amount of the asset's cost that the company has charged to expense to date and it is not a cash fund.

Work Step by Step

Hence, depreciation for an asset does not result in accumulation of cash for replacement of the asset.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.