Question

What is the intention behind purchasing Fixed Asset?
O Resale at profit in normal course of business
O For the purpose of production of goods or providing of services
For the purpose of giving on rent
O None of the options​

Answer 1

A fixed asset is a property that lasts longer than a financial reporting period. Usually, when companies possess a fixed asset, the intent is to hold it for longer than a year and utilize it according to a strategic plan.