Accumulated Depreciation

Discipline: Economics

Accumulated Depreciation is the total amount of depreciation a fixed asset (machinery, equipment, or other property) has suffered to date.

In simple terms, if a three-year old fixed asset has depreciated 3000 dollars annually, then its accumulated depreciation equals to 9000 (3 x 3000) dollars.

Also see: accelerated depreciation, normal depreciation

Share

Facebook Twitter