Fixed assets: Learn what a fixed asset

Learn what a fixed asset is, how it is accounted for, and how it appears on the balance sheet. A fixed asset is property with a useful life greater than one reporting period, and which exceeds an entity's minimum capitalization limit. Fixed Assets – Definition and Meaning In accounting, fixed assets are assets which cannot be converted into cash immediately. They are primarily tangible assets used in production having a useful life of more than one accounting period. Unlike current assets or liquid assets, fixed assets are for the purpose of deriving long-term benefits. Generally, it refers to tangible assets that an organization owns and uses to generate revenue. To account for natural wear and tear on these assets ... Learn what fixed assets are, how they differ from current assets, and how to account for them in a business. See examples of tangible and intangible fixed assets, such as land, building, machinery, software, and patents. Fixed assets are assets that have a useful life of more than one year. Fixed assets include property, plant, and equipment and are recorded on the balance sheet.