What are deprecialable Assets?

Depreciable assets are tangible fixed assets that have a limited useful life and can lose value over time due to wear and tear, obsolescence, or other factors. Examples include machinery, vehicles, buildings, and equipment. Businesses can deduct the cost of these assets over their useful life through depreciation, which helps allocate the expense of the asset over the periods it contributes to revenue. This accounting practice reflects the declining value of the asset and matches expenses with the income generated from its use.