what account type is accumulated depreciation

Accumulated Depreciation is a contra-asset account used in accounting to track the total depreciation expense of a fixed asset over its useful life. Unlike other asset accounts, it does not represent an actual asset but serves to reduce the carrying value of an asset on the balance sheet. Accumulated depreciation accumulates the depreciation charged to an asset each accounting period, reflecting the decrease in value due to factors like wear and tear or obsolescence. It plays a key role in determining the book value of assets, ensuring accurate financial reporting and tax compliance.