What type of asset is most commonly depreciated in accounting?

Tangible assets are most commonly depreciated in accounting because they represent physical items that have a finite useful life and their value decreases over time as they are used. Depreciation is the systematic allocation of the cost of a tangible asset over its expected useful life, reflecting wear and tear, obsolescence, and other factors that diminish the asset's value.

Tangible assets include property, plant, and equipment, such as buildings, machinery, and vehicles. These assets have a clear physical presence and are subject to physical wear and deterioration, making them suitable for depreciation, which helps businesses match the cost of the asset with the revenue it generates over time.

In contrast, cash and cash equivalents do not get depreciated because they retain their value. Intangible assets, while they may be amortized, are treated differently than tangible assets in accounting. Investments in securities are typically not depreciated either; they are accounted for based on fair market value or cost, depending on the accounting method being used. This distinction helps explain why tangible assets are the focus of depreciation practices in accounting.