What is "accumulated depreciation"?

Answer by  jb7000 (96)

Accumulated depreciation is an account on a balance sheet that is used to track how much of a fixed asset's value has been aged over time. It's a cumulative account that you add to each period until the asset is fully depreciated.

Answer by  cangel818 (981)

It is business term used to reflect losses in the value of assets based on wear, tear, and usage. It is used by companies to give shareholders a more accurate assessment of the assets of the company. Even though the business is not selling the product it loses value.