QUESTION 26 The type of account and normal balance of Accumu

QUESTION 26 The type of account and normal balance of Accumulated Depreciation O asset, credit O asset, debit O contra asset, credit is O ontra asset, debit

Solution

The Correct Answer Choice is \"Contra Asset, Credit\"

- A Contra Asset account is an account having a credit closing balance or a negative or a Zero balance.

- The Accumulated Depreciation account is an asset account and it always have a credit balance

- The Accumulated Depreciation Account shall be shown in the Balance Sheet as a deduction from the Gross Value of Fixed Asset

- Book Value of a Fixed Asset = Cost of fixed aseets - Accumulated Depreciation

- The Accumulated Depreciation accounts always have a credit Balance