Capital assets are important to the company’s success because they are the belongings of a company that are used to generate revenue over the long-term. Examples of common capital assets include properties, vehicles, office equipment, plant and machinery, and intangible assets such as copyrights, licenses, and trademarks.

The accounting treatment of capital assets involves recording the cost of the asset on the balance sheet as well as expensing the asset over the useful life of the asset. Depreciation is the process of accounting for the cost of the asset over the useful life, thus matching the cost of the asset with the revenue it generated over the same time period. A company can depreciate a capital asset by either the straight-line method or the declining-balance method.

In addition to depreciation, there are also other accounting treatments related to capital assets. For example, when a company purchases capital assets, they may take advantage of Section 179 of the Internal Revenue Code, which allows businesses to deduct the costs of certain types of equipment. Companies may also use the modified accelerated cost recovery system (MACRS), which allows businesses to recover the cost of certain assets over a fixed period of time.

In conclusion, capital assets are assets that are used in a company's business operations to generate revenue over the course of more than one year. The assets are recorded on the balance sheet and require specific accounting treatments such as depreciation and taking advantage of available deductions. Properly accounting for capital assets is important for the long-term success and financial stability of any company.