🏢Fixed assets, also known as long-term assets, are tangible assets used in a company's normal course of business.
⏳Depreciation is the process of allocating the cost of fixed assets over their expected useful lives.
💼Depreciation expense supports the matching principle, which matches the cost of fixed assets to the revenue they generate over time.
🏗️Examples of depreciable fixed assets include buildings, machinery, vehicles, furniture, and fixtures.
🌱Land is not depreciable as it tends to appreciate and does not suffer wear and tear.