Fixed Assets
Long-term tangible assets used in business operations over multiple periods, such as land, buildings, and equipment, also called property, plant, and equipment.
Fixed Assets
Long-term tangible assets used in business operations that are not expected to be converted into cash within one normal operating cycle, also known as property, plant, and equipment.
For example, a restaurant’s fixed assets might include the building, kitchen equipment, furniture, and delivery vehicles, all of which are used in operations rather than held for sale.
Fixed assets typically represent significant capital investments requiring planned maintenance and eventual replacement. On the balance sheet, they appear at historical cost minus accumulated depreciation, with their annual cost allocation appearing as depreciation expense on the income statement.