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Accumulated depreciation is the total amount a company depreciates its assets, and depreciation expense is the amount a company's assets are depreciated for a single period. Essentially, accumulated depreciation is the total amount of a company's cost that has been allocated to depreciation expense since the asset or assets have been put into use. The accumulated depreciation account is an asset account on a company's balance sheet with a credit balance.
Learn what accumulated depreciation is. Accumulated depreciation is simply the total amount of an asset's cost that has been depreciated since the asset was purchased. In other words, it is the total amount of an asset's cost that has been charged as an expense since the asset was purchased.