Which account is not a fixed asset?

Office Furniture and Equipment

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Freehold land and Buildings

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Stock of Materials

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Plant and Machinery

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Solution

The correct option is C Stock of Materials
Assets are classified as Current Assets and Fixed Assets.

Fixed Assets are those which are of permanent nature and these exists in the business for a long duration. Like Land & Building, Plant & Machinery etc.

Current Assets are evolve during the process of business. These are fluctuating and changes with each business transaction. Like Inventory, Sundry Debtors, Cash and Bank balances.

Inventory/Stock is an item of assets and shown in balance sheet under the heading "Current Assets".

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3) Wages paid for installation of Machinery Rs 750 was posted to wages account.
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