Fixed Assets

What are Fixed Assets?

Fixed assets are long-term tangible assets that a company uses in its business operations to generate income. They are not intended for resale and are typically held for more than one accounting period. Examples include buildings, machinery, vehicles, and equipment.

Short Description: Long-term tangible assets used in business operations to generate income, not meant for sale.

• Examples: Buildings, machinery, vehicles, and equipment.
• Depreciation: Fixed assets are subject to depreciation over their useful life, except for land.
• Balance Sheet Entry: Recorded on the balance sheet under non-current assets.

Understanding fixed assets is crucial for evaluating a company's long-term financial strategy and investment in productive resources. Their management and depreciation can significantly impact a company's financial performance and tax liabilities.