Need help with correcting theory questions please!

[sam.utute]

In real accounting terms, Accumulated Depreciation is known as a "contra-asset".

You have to watch out you never use the word "value" in any of your answers relating to depreciation.

Accumulated Depreciation reduces the "value" of your equipment account. Therefore, (as it clearly is not a liability) it is a negative asset account.

It would probably be better to say that it records the cumulative total of depreciation incurred over the asset's life thus far. Also allows for calculation of the carrying value.

I really want to stress how important it is to refrain from using 'value' in any answer. Best to stay well clear of it.

[luffy]

In real accounting terms, Accumulated Depreciation is known as a "contra-asset".

You have to watch out you never use the word "value" in any of your answers relating to depreciation.

Accumulated Depreciation reduces the "value" of your equipment account. Therefore, (as it clearly is not a liability) it is a negative asset account.

It would probably be better to say that it records the cumulative total of depreciation incurred over the asset's life thus far. Also allows for calculation of the carrying value.

I really want to stress how important it is to refrain from using 'value' in any answer. Best to stay well clear of it.

Thanks! I'll keep that in mind in my explanations.

[hello_kitty]

i'm still confused on what accumulated depreciation is?
i have never learnt anything about depreciation

[hello_kitty]

Also, I know that a stock card is a subsidiary accounting record, that records the movement of stock in and out of the business, but if a question was asking what the purpose is, woudl i say that it's purpose is to determine the number of items of stock on hand, as well as the cost sales, and in the process detect any stock losses/gains?

THanks