Depreciable Assets
Long-term assets with limited useful lives that lose value over time and must have their costs systematically allocated as expenses over their useful lives.
Depreciable Assets
Tangible long-term assets that have a limited useful life and decrease in value over time due to wear and tear, obsolescence, or other factors.
For example, manufacturing equipment, vehicles, office furniture, and buildings are all depreciable assets that provide benefits over multiple years but gradually lose value, requiring systematic allocation of their cost over their useful lives.
Depreciable assets are capitalized when purchased and systematically expensed through depreciation methods like straight-line or accelerated depreciation. This treatment aligns with the matching principle by distributing the asset’s cost over the periods it generates revenue.