define accumulated depreciation

Accumulated depreciation refers to the total amount of depreciation expense that has been recorded against a company’s fixed assets since the asset was acquired. It represents the wear and tear, usage, or obsolescence of assets over time. This amount is subtracted from the original cost of the asset on the balance sheet, reducing its book value. Accumulated depreciation is used to allocate the cost of an asset over its useful life, and it helps businesses track the depreciation expense for tax and accounting purposes, ensuring a more accurate representation of an asset's remaining value