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What should the accumulated depreciation equal at the end of the asset's useful life The Balance In Accumulated Depreciation Will Be The Same Amount Under all the depreciation methods.
The depreciation of an asset up to one point in its life is referred to as accumulated depreciation. Since accumulated depreciation is a counter asset account, its natural equilibrium is a credit that lowers the asset's total value. General accepted accounting principles (GAAP) require that expenses be matched to the same accounting period in which the relevant revenue is generated. This is known as the matching principle. A business will depreciate a portion of a capital asset's value over the course of each year of its useful life. This implies that the expense related to using up an asset that has been capitalised is reported every year the asset is put to use and generates income.
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The method of identifying the advantages and disadvantages of various options by looking at the incremental impact on total revenue and total cost caused by a very modest change in the value or input of each alternative (just one unit). Instead of making decisions based on totals or averages, marginal analysis encourages those that focus on small or gradual changes to resources. Examining the costs and possible gains of particular business operations or financial choices is known as marginal analysis. The objective is to ascertain whether the benefits from the change in activity will be great enough to outweigh the costs.
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