What impact does accumulated depreciation have on a non-current asset’s value?

Accumulated depreciation directly represents the total amount of depreciation expense that has been allocated to a non-current asset over its useful life. This accumulated amount serves to reflect the gradual reduction in the asset's value as it is used and subjected to wear and tear. As the asset ages, its carrying amount (or book value) decreases on the balance sheet, aligning with the real-world decline in value.

This connection is important for accurately assessing an asset's valuation in financial statements. By showing accumulated depreciation, the financial statements provide clear insight into how much of the asset's original cost has been expensed, signaling to stakeholders the current worth of the asset in the company’s books.

The other options misrepresent the role of accumulated depreciation. For example, it does not increase the book value of the asset or mark depreciation expense for a specific period; rather, it summarizes the total depreciation recognized since acquisition. Additionally, it does not directly impact total revenue; while the condition of an asset may affect revenue generation, accumulated depreciation itself is purely an accounting measure reflecting value reduction.