why is accumulated depreciation an asset
Accumulated Depreciation. Accumulated depreciation is a contra-asset equal to the total of all depreciation expense incurred relating to a long-term asset. On the balance sheet, an asset is carried at its acquisition value. The accumulated depreciation account is a negative balance on the balance sheet which allows for the asset account to reflect the acquisition cost of the asset while ensuring that the totals on the balance sheet reflect the value of the company.