If you must make a choice between classifying accumulated depreciation as an asset or liability, it should be considered an asset, simply because that is where the account is reported in the balance sheet..
Related posts to is accumulated depreciation a current liability
Financial statement reporting of current liabilities . Accumulated Depreciation, Buildings. 41,000. 219,000. Machinery and Equipment. $440,000.
As such, it is considered a contra asset account, which means that it contains a negative balance that is intended to offset the asset account with which it is paired, resulting in a net book value. Accumulated depreciation is classified separately from normal asset and liability accounts, for the following reasons:.
Accumulated depreciation is considered a contra asset, appearing as a negative balance underneath the asset to which it is assigned in the asset section on the balance sheet. However, accumulated depreciation cannot be considered neither a true asset nor a true liability as it does not meet the qualifications for either category. Continue Reading..
Balance Sheet Accounts: Current Assets, These claims are liabilities made by lenders and equity made by owners. Accumulated Depreciation Buildings: .