Is Accumulated Depreciation a Current Asset? FAQs
No, accumulated depreciation is not a current asset for accounting purposes.
A current asset is any asset that will provide an economic benefit for or within one year.
Accumulated depreciation accounts for a reduction of the gross amount listed for the fixed assets with which it is paired.
Even though it is listed along with assets, depreciation does not provide any economic value. Rather, it is an amount of value that has already been used.
Accumulated depreciation is calculated by subtracting the residual value from the original purchase price of an asset and dividing this figure by the expected number of years in its useful lifespan.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.