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Fixed assets are long-term assets that companies use to operate

Added 12-07-21 12:14:03pm EST - “Fixed assets is an accounting term that refers to the long-term assets a company uses to create products and services.” - Businessinsider.com

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Posted By TheNewsCommenter: From Businessinsider.com: “Fixed assets are long-term assets that companies use to operate”. Below is an excerpt from the article.

A fixed asset is an accounting term that's used to distinguish between assets that will be quickly used up (i.e., current assets) and assets that will provide value for a longer period. A company's fixed assets may include the land, machinery, and other tangible equipment that it will use to create the products and services it sells. 

Fixed assets are tangible long-term assets that a business plans to use for more than one operating cycle.  Mike Zeiter, a CPA/PFS and CFP who runs Zeiter Tax Services, says generally, the easiest way to determine if something is considered a fixed asset is if it will last for more than one year. 

Fixed assets are contrasted by current assets, which get used up within a single operating cycle. For example, a toy company may buy an assembly machine that will last 20 years (a fixed asset) and use it to combine toy parts (current assets) to create the toys it sells. 

Fixed asset generally refers to tangible assets as opposed to intangible noncurrent assets, such as patents, trademarks, and goodwill. 

Fixed assets are also called noncurrent assets, long-term assets, or long-lived assets, and they're often listed under the property, plant, and equipment (PP&E) section of a company's balance sheet. 

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