Frequently Asked Questions(FAQ)

Is accumulated depreciation a current asset?

No, accumulated depreciation is not considered a current asset for accounting purposes.

What is recoverable depreciation?

Recoverable depreciation is the difference between an item’s replacement cost and its Actual Cash Value, or ACV.

Is accumulated depreciation a debit or credit?

Accumulated depreciation reduces the total value of assets on the financial statement. This means that even though it is reported on the balance sheet under the asset section, accumulated depreciation is considered a credit balance.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

More about me

More About Glossary of Common Financial Terms

Show More