Accumulated depreciation on all assets is classified as what type of account?

Accumulated depreciation on all assets is classified as a negative Property, Plant, and Equipment (PPE) account. This classification is crucial for understanding the value of an asset on the balance sheet over time.

Accumulated depreciation represents the total amount of depreciation expense that has been allocated to an asset since it was acquired. This amount reduces the book value of the asset, reflecting its wear and tear or usage. By being a negative account, accumulated depreciation offsets the total amount of PPE on the financial statements. For instance, if a company has a piece of machinery with a cost of $100,000 and $30,000 in accumulated depreciation, the net book value reported for that asset would be $70,000.

The other classifications don't apply because accumulated depreciation is not a positive asset, an intangible asset, or a non-current liability. Instead, it serves to present a more accurate view of the asset's value by showing both its cost and the depreciation that has been accounted for up to that point. This is essential for stakeholders to assess the financial health and asset management of a company.