Final answer:
Fixed assets are recorded at historical cost and are depreciated over their useful lives. They are classified as long-term assets and reported on the balance sheet under non-current assets.
Step-by-step explanation:
The question provided pertains to the characteristics of fixed asset accounts and how these assets are treated in accounting practices. When discussing fixed assets, we understand that they are typically large, long-term assets that are used in the operations of a business. The assertion that fixed assets are recorded at historical cost refers to the practice of recording such assets at their original purchase price. This is part of the cost principle in accounting, which dictates that assets are recorded at the cash amount (or its equivalent) at the time of the transaction.
Depreciation is the systematic allocation of the cost of a fixed asset over its useful life. This implies that fixed assets are not only recorded at their historical cost but are also depreciated over time to reflect their usage and aging. Assertion 3, which states that fixed assets are classified as long-term assets, aligns with the understanding that these assets provide value to a business for more than one fiscal year. Lastly, fixed assets are indeed reported on the balance sheet, specifically under the non-current assets section, reflecting the company's long-term investments in assets that contribute to its production or operational capacity.