What term is used to represent the consumed amount of fixed assets over time?

The term that represents the consumed amount of fixed assets over time is depreciation. Depreciation refers to the reduction in the value of a fixed asset as a result of wear and tear, age, or obsolescence. This concept is important in accounting as it allows companies to allocate the cost of an asset over its useful life, reflecting the asset's consumption and its diminishing value on the balance sheet.

Depreciation applies to tangible fixed assets such as machinery, vehicles, and buildings, making it a key consideration in both investment and financial reporting contexts. This allocation of cost can affect financial statements, tax calculations, and insights into the financial health of a business.

In contrast, amortization is a similar concept but typically applies to intangible assets, not fixed assets. Capital gains refer to the profit made on the sale of an asset when its selling price exceeds its purchase price. Liquidation refers to the process of winding up a company and distributing its assets, typically following insolvency. These terms are distinct from the concept of depreciation, which specifically addresses the usage and wear of fixed assets over time.