Question

Fixed assets are __________________.

• A. Kept in the business for use over a long time of earning income
• B. Meant for resale
• C. Meant for conversion into cash as quickly as possible
• D. All of the above

Answer 1

Answer: (A)

Kept in the business for use over a long time of earning income

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).