As the balance in the accumulated depreciation increases, total assets because accumulated depreciation is a cumulative account.
Accumulated depreciation is that total amount upto which an asset has been depreciated up until a single point.
In each period, the depreciation expense is recorded in period in which it is added to the accumulated depreciation balance at the beginning. An asset's carrying value on the balance sheet is obtained by deducting historical cost from accumulated depreciation. At the end of an asset's useful life, carrying value of the asset on the balance sheet will match salvage value of asset.
Accumulated depreciation is shown on the balance sheet below the line of related capitalized assets. The accumulated depreciation balance keeps on increasing over time by adding the amount of depreciation expense recorded in each current period.
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