what account type is accumulated depreciation

Learn about the account type for accumulated depreciation, a key concept in accounting. Accumulated depreciation is a contra-asset account used to track the reduction in the value of a fixed asset over time. Understand how it works in conjunction with the asset’s original cost to calculate the asset's book value. Discover its role in financial reporting, tax calculations, and how businesses use it to manage long-term assets like equipment, machinery, and buildings. Gain insights into the impact of accumulated depreciation on balance sheets and overall financial health.