Depreciation Fixed Assets
Depreciation Fixed Assets refers to the gradual decrease in value of tangible assets such as buildings, machinery, equipment, and vehicles over time. This decrease in value is recorded as an expense on the company's income statement to reflect the wear and tear or obsolescence of the assets. Depreciation is calculated using various methods such as straight-line depreciation, double declining balance, or units of production, and is essential for accurately reporting the true financial position of a business.