Question

WHAT IS DIFFERENCE BETWEEN CAPITAL GOODS AND FIXED ASSET

Answer 1

Capital Goods and Fixed Assets mean the same. But, term CAPITAL GOODS has relevance in TAXATION, whereas FIXED ASSET is the term used in ACCOUNTING.

A fixed asset is a long-term tangible piece of property that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets are known as property, plant, and equipment (PP&E). They are also referred to as capital assets.

Capital goods are tangible assets, such as buildings, machinery, equipment, vehicles and tools that one organization uses to produce goods or services as an input to produce consumer goods and goods for other businesses.