accumulated depreciation is what type of accounts

Accumulated depreciation is classified as a contra asset account on the balance sheet. This means it is an account that reduces the value of a related asset, such as property, plant, or equipment. While assets represent the value of resources owned by a company, accumulated depreciation tracks the total amount of depreciation that has been recorded against those assets over time. As depreciation is recognized periodically, the accumulated depreciation account increases, thereby reducing the book value of the asset. This allows businesses to accurately reflect the asset’s remaining value over its useful life