Office equipment definition
/What is Office Equipment?
Office equipment is a fixed asset account in which is stored the acquisition costs of office equipment. This account is classified as a long-term asset account, since the asset costs recorded in it are expected to be held for more than one year. It is paired with and offset by an accumulated depreciation account, in which is stored the cumulative amount of depreciation associated with those assets.
Examples of Office Equipment
Examples of office equipment are copiers, fax machines, computers, and printers.
Accounting for Office Equipment
When office equipment is purchased, it is recorded within the Office Equipment asset account, as long as the expenditure exceeds the organization’s capitalization threshold; if not, it is charged to expense. The equipment is then depreciated over the term of its expected useful life. Once this useful life has been reached, all depreciation stops, since the book value of the asset will have declined to zero. When office equipment is disposed of, the initial asset entry and the associated accumulated depreciation balance are reversed, which clears the asset from the accounting records.