Define, classify, and explain the accounting for property, plant, and equipment; intangibles; and natural resources.

- Property, plant, and equipment (along with intangibles and natural resources) are long-lived assets used by the company in the normal course of operations to generate revenue.

- These assets are generally recorded at cost.

- As the service potential of the asset is used, the asset's cost is allocated as an expense (called depreciation, amortization, or depletion).