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Commerce · Q172

Accounting

Graduate and Post Graduate · Commerce · question 172

Q172

Which of the following is the normal balance of an accumulated depreciation account?

A.
Debit balance
B.
Credit balance
Answer
C.
Nil balance
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Credit balance is the normal balance of an accumulated depreciation account. Accumulated depreciation has a credit balance, because it aggregates the amount of depreciation expense charged against a fixed asset.