Property, Plant, and Equipment (PP&E) refers to long-term tangible assets that a company uses in its operations to generate revenue. These assets include land, buildings, machinery, and vehicles. PP&E is essential for businesses as it supports production and service delivery. PP&E is recorded on the balance sheet at its historical cost, which includes purchase price and any costs necessary to prepare the asset for use. Over time, these assets may depreciate, reflecting their reduced value due to wear and tear. Proper management of PP&E is crucial for maintaining operational efficiency and financial health.