What type of account is ‘Accumulated Depreciation’ on the balance sheet?

Explanation

Core Concept: Accumulated Depreciation is a contra-asset account with a normal credit balance that offsets the related physical fixed asset account to report net book value. Context/Distractors: Depreciation expense is an income statement expense account, whereas accumulated depreciation stays on the balance sheet. Exam Tip/Key Fact: Asset Book Value = Historical Cost − Accumulated Depreciation.