In which section of the trial balance would you find accumulated depreciation?
Practice Questions
1 question
Q1
In which section of the trial balance would you find accumulated depreciation?
Assets
Liabilities
Equity
Expenses
Accumulated depreciation is found in the Assets section of the trial balance as it is a contra asset account that reduces the value of fixed assets.
Questions & Step-by-step Solutions
1 item
Q
Q: In which section of the trial balance would you find accumulated depreciation?
Solution: Accumulated depreciation is found in the Assets section of the trial balance as it is a contra asset account that reduces the value of fixed assets.
Steps: 5
Step 1: Understand what a trial balance is. It is a list of all the accounts in the general ledger with their balances.
Step 2: Identify what accumulated depreciation is. It is the total amount of depreciation that has been charged on fixed assets over time.
Step 3: Know that accumulated depreciation is related to fixed assets like buildings and equipment.
Step 4: Recognize that accumulated depreciation is a contra asset account, which means it reduces the value of the related fixed assets.
Step 5: Conclude that since accumulated depreciation reduces the value of assets, it is listed in the Assets section of the trial balance.
