Asset accounts
Asset Catalysts: Assets are the catalysts that drive business growth and profitability.
The Property, Plant, and Equipment (PP&E) account is a balance sheet account that represents the long-term assets of an organization, including land, machinery and equipment, furniture and fixtures, and leasehold improvements.
The depreciation expense is recognized on the income statement over the useful life of the asset, which reduces the carrying value of the asset on the balance sheet. The accumulated depreciation is reported as a contra-asset account, which is subtracted from the gross PP&E to arrive at the net PP&E.
Financial Reporting's Function in Business
Depreciation is allocating the cost of a tangible asset over its useful life. It is a non-cash expense that reduces the carrying value of an asset on the balance sheet, and is recorded as an expense on the income statement.
Assets are described on the balance sheet in a specific order, typically: Current Assets, Non-Current Assets, and Intangible Assets.
Assets are typically valued at their historical cost, which is the original cost of acquiring the asset, or at their fair market value, which is the current market value of the asset.