Question

Which of the following is/are not a fixed asset?

• A. Stock
• B. Vehicle
• C. Fixed deposit in bank
• D. Both (a) and (c)
• E. Both (b) and (c)

Answer 1

Answer: (D)

Both (a) and (c)

Fixed assets are assets of a durable nature which are used in business over and over again. Like Plant & Machinery, Land & Building. These assets are not meant for resale. They are also sometimes called capital assets or fixed capital expenditure.

Stocks are part of Inventory and has to be shown under the heading current assets.

Fixed Deposit is an investment and to be shown under the heading deposits.