Accumulated Depreciation is presented on which financial statement?

Accumulated Depreciation is reported on the Balance Sheet. This account represents the total amount of depreciation expense that has been allocated to a fixed asset since it was acquired. It acts as a contra asset account, which means it reduces the gross value of the fixed assets on the Balance Sheet.

By showing accumulated depreciation, the Balance Sheet provides a clearer picture of the net book value of the assets—an important figure for understanding the company's financial position. While the Income Statement reflects depreciation expenses as they are incurred during a specific period, the cumulative amount is displayed on the Balance Sheet, indicating the ongoing reduction in the value of the company's assets over time. Thus, the Balance Sheet is the correct financial statement for presenting Accumulated Depreciation.