what accumulated depreciations

Accumulated depreciation is the total amount of depreciation that has been recorded against a company’s fixed assets since they were acquired. Depreciation is the process of allocating the cost of an asset over its useful life to reflect its decreasing value over time. Accumulated depreciation is recorded in a contra asset account on the balance sheet, which reduces the net book value of the asset. It accounts for wear and tear, aging, obsolescence, or other factors that cause the asset to lose value. This helps businesses accurately represent the remaining value of their assets and ensures that expenses are matched with the revenue generated by the asset over time