The total amount of depreciation recorded against an asset over the entire time the asset has been owned: Multiple Choice Is shown on the income statement of the final period. Is referred to as an accrued asset. Is only recorded when the asset is disposed of. Is referred to as depreciation expense. Is referred to as accumulated depreciation.

Is referred to as accumulated depreciation.

Explanation:

Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.

The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.

In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.

Hence, the total amount of depreciation recorded against an asset over the entire time the asset has been owned is referred to as accumulated depreciation.

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