Final answer:
The statement is false because accumulated depreciation is a contra asset account on the balance sheet, not a contra expense on the income statement, and depreciation expense is recorded on the income statement, not as an asset on the balance sheet. Balance sheets and T-accounts treat bank deposits and loans differently for individuals and banks; for an individual, a deposit is an asset and a loan is a liability, but for a bank, loans are assets and deposits are liabilities.
Step-by-step explanation:
The statement in the question is false. Accumulated depreciation is not recorded as a contra expense account on the income statement; it is actually recorded as a contra asset account on the balance sheet. This account reflects the total amount of depreciation that has been expensed for a fixed asset since it was acquired by the company. Conversely, the depreciation expense is recorded on the income statement for each accounting period. The depreciation expense shows how much of an asset's value has been used up during the period.
Depreciation reduces the value of assets on the balance sheet and matches the cost of using the assets with the revenues generated by the assets, which is reflected on the income statement. The balance sheet will show an asset account with its historical cost and a separate accumulated depreciation account that shows the total depreciation to date, reducing the asset's net book value.
Regarding the use of a T-account, it serves as a simple representation of an account in double-entry bookkeeping, with debits on the left side and credits on the right side. When it comes to a bank's T-account, assets would be things like loans made and securities purchased, while liabilities would include deposits from customers. In the context of a personal balance sheet, a deposit would be considered an asset, and a loan would be a liability. However, for a bank, this is reversed; loans are assets because customers owe the bank money, and deposits are liabilities because the bank owes money to its depositors.