Fixed Assets

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Description of Fixed Assets. Explanation.


Definition Fixed Assets. Description.

Fixed Assets are long-term assets that will not be converted to cash in the short term, but are used in the operation of the business. Also known as Property, Plant and Equipment.

Examples include land, buildings, equipment, transportation vehicles, plant, machinery, furniture and computers. There may also be intangible fixed assets such as patent rights or copyrights.

These assets are quantified on the Balance Sheet and depreciation expenses are taken on them. Companies may protect themselves against property loss or damage caused by disastrous events by having a Commercial Property Insurance.

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Initial Understanding of a Balance Sheet, Financial Statement Analysis, Accounting...

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Compare with: Current Assets  |  Capital Assets  |  Intangible Assets  |  Return on Net Assets  |  Assets Held For Sale

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