Chapter 10, Problem 5DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Depreciation:

Depreciation means the depletion in the value of the assets which arises due to its use over a period of time. Such decrease in the assets over the period of time may be recorded either through straight line method or written down value method.

The balance in the accumulated depreciation-machinery account whether represents funds to replace the machinery when it wears out, if not so then what does it represents.