Question

Give two examples for fixed assets.

Hint:

To identify Fixed Assets, check the intent and duration: if the asset is bought to help produce goods rather than to be resold, and it stays in the business for more than one year, it is a Fixed Asset.

Answer 1

Concept: Fixed assets are long-term tangible assets used in business operations to generate income and are not intended for immediate resale.
Identifying long-term investments.
Items like Machinery, Land, Buildings, and Furniture are held for more than one accounting year and form the productive capacity of the firm.