The Accumulated Depreciation Account

C

Depreciation recognized and accumulated on fixed assets still on the books is reflected in the Accumulated Depreciation account(s).

The accumulated depreciation account is an important component of the financial statements, particularly the balance sheet, for companies that own fixed assets. It represents the total amount of depreciation expense that has been recorded over the life of the assets. The correct answer to the question depends on the context and the specific accounting policies of the company, but let's go through each option to understand them better:

A. Total depreciation for fixed assets since the business was formed: This option suggests that the accumulated depreciation account should reflect the cumulative amount of depreciation expense recognized since the inception of the business. In other words, it would include the depreciation expense from all prior years. This option is incorrect because accumulated depreciation is a point-in-time measure that shows the total depreciation up to the current date, not since the formation of the business.

B. Current depreciation expense plus estimated depreciation for next year: This option implies that the accumulated depreciation account should include the current year's depreciation expense and an estimate of the depreciation expense for the upcoming year. However, this is incorrect. The accumulated depreciation account should not include estimated future depreciation expenses; it should only reflect the depreciation expenses that have already been recognized.

C. Total depreciation for fixed assets still in use: This option suggests that the accumulated depreciation account should represent the total depreciation for fixed assets that are still in use. It means that any fixed assets that have been retired or disposed of would not be included in the accumulated depreciation account. This option is incorrect because the accumulated depreciation account includes the depreciation for all fixed assets, whether they are still in use or not.

D. Only the depreciation expense recognized during the current year: This option states that the accumulated depreciation account should only include the depreciation expense recognized in the current year. This is also incorrect because the accumulated depreciation account accumulates the depreciation expense recognized over the entire life of the fixed assets, not just the current year.

To summarize, the accumulated depreciation account should reflect the total depreciation expense recognized since the acquisition of the fixed assets, regardless of whether they are still in use or not. Therefore, the correct answer is not provided among the given options.