Fixed Assets
What are Fixed Assets?
Fixed assets are long term assets such as buildings, plant & equipment, office furniture.
![fa1](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa1.jpg)
How it Works
A business will have assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa2.jpg)
Assets include money and things that belong to the business.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa3.jpg)
For example, the business will hold money in the bank.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa4.jpg)
Assets also include money owed by customers.
![fa5](https://seeaccountingnow.online/wp-content/uploads/2021/06/fa5.jpg)
Fixed assets are long term assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa6.jpg)
They are not expected to be consumed within the coming 12-month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa7.jpg)
The business uses fixed assets to generate income.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa8.jpg)
Buildings, factories, office equipment are all examples of fixed assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa9.jpg)
They are tangible assets.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa10.jpg)
On the balance sheet, they are shown as property, plant, and equipment.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/fa11.jpg)
© R.J. Hickman 2020