Question

Which of the best explain fixed assets​

Answer 1

Answer:

A fixed asset is a long-term tangible piece of property or equipment 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 most commonly appear on the balance sheet as property, plant, and equipment (PP&E).

Answer 2

Complete Question:

Which of these best explains fixed assets?

(A) Are bought to be used in the business.

(B) Are expensive items bought for the business.

(C) Are items that will not wear out quickly.

(D) Are of long life and are not purchased specifically for resale.

Answer:

(D) Are of long life and are not purchased specifically for resale best explain the fixed assets.

Explanation for the answer:

• Fixed assets refers to those assets which purchased or used for a long period of time.
• Theses assets are purchased by the business for its regular operating activities of manufacturing goods and services.
• Some examples of Fixed assets are: Machinery, equipment, Land and Building etc.
• These assets are bought with the purpose of increasing the revenue of the business.
• Fixed assets play an important role in being a part of factors of production.