Recording assets and expenses is a fundamental aspect of accounting that helps organizations maintain accurate financial records. Assets, such as equipment, real estate, or cash, are recorded on the balance sheet as they represent the economic resources owned by a company. When an asset is acquired, its cost is recorded as an increase in assets and a corresponding decrease in cash or an increase in liabilities, depending on how it's financed. Over time, assets may depreciate or amortize, and these expenses are recorded on the income statement, reducing the value of the asset gradually. This process ensures that the company accurately reflects the value of its assets and their impact on profitability