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.

To determine: 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.