Fixed Assets

What are Fixed Assets?

Fixed assets are long term assets such as buildings, plant & equipment, office furniture.

How it Works

A business will have assets.

Assets include money and things that belong to the business.

For example, the business will hold money in the bank.

​Assets also include money owed by customers. 

Fixed assets are long term assets.

They are not expected to be consumed within the coming 12-month period.

The business uses fixed assets to generate income.

Buildings, factories, office equipment are all examples of fixed assets.

​They are tangible assets.

On the balance sheet, they are shown as property, plant, and equipment. 

© R.J. Hickman 2020