Question

Which of these best explains fixed assets?

• A. Are bought to be used in the business.e.
• B. Are expensive items bought for the business.
• C. Are items that will not wear out quickly.
• D. Are of long life and are not purchased specifically for resale.

Answer 1

The correct option is D

Are of long life and are not purchased specifically for resale.

Answer: (D) Are of long life and are not purchased specifically for resale.

Explanation: Fixed assets are used for a long period of time and are purchased by the business for its regular operations of manufacturing goods and services for example machinery, equipment. These are bought with the intent of increasing the revenue of the business. Fixed assets play a huge role in being a part of factors of production.