Final answer:
Accumulated depreciation is shown on the balance sheet as a contra asset account, which reduces the total asset value over time due to asset usage and wear.
Step-by-step explanation:
Accumulated depreciation is reported on the balance sheet. It is shown under the assets section, but as a contra asset account, which means it reduces the total value of the company's assets. To explain in detail, when a company buys an asset like machinery or equipment, it is expected that these assets will be used over a period of time. The loss of value as an asset is used and wears out is captured by depreciation.
Each year, a portion of the asset's cost is recorded as an expense on the income statement. However, the cumulative total of these depreciation expenses over the years is what's shown on the balance sheet as accumulated depreciation. This amount is subtracted from the original cost of the assets to reflect their reduced worth over time. So, to directly answer the question, accumulated depreciation would be shown on option A) the Balance Sheet.