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Depreciation
The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.
Inventory
A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.
Matching Principle
An accounting concept that dictates that expenses should be recorded in the same period as the revenues they help to generate.
Expected Economic Life
The anticipated period over which an asset is useful to the owning entity in generating revenue.
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