Fixed asset accounting entries are the transactions related to the purchase and depreciation of tangible assets such as property, plant and equipment. The primary aim of fixed asset accounting is to ensure that these assets are accurately recorded in a way that reflects their true value over time. This is important for both financial reporting accuracy and tax liability. When purchasing new assets or disposing of existing ones, businesses must be diligent in making sure all transactions are properly accounted for and reported. Fixed asset accounting entries involve taking into account factors such as acquisition cost, accumulated depreciation and salvage value when entering them into the books.