sajad torkamani

In a nutshell

A fixed asset is a long-term tangible piece of property or equipment that a company owns and uses in its operations to generate income. Fixed assets aren’t expected to be sold for cash within 12 months.

Examples

  • Office building – used by employees for work.
  • Warehouse – used to produce goods.
  • Computers – used to run the business.
  • Furniture – used in the office.
  • Vehicles – used to deliver goods.

Key characteristics of fixed assets

  • Physical things
  • Useful for more than 12 months
  • Not directly sold to a firm’s consumers
  • Can’t easily be liquidated into cash
  • Typically depreciate with time

Sources