Accounts Notes: what do you mean by fixed asset

Saturday 7 May 2011

what do you mean by fixed asset

Fixed asset means Fixed Investment with Assets i.e. Plant &
Machinery, Electrical Installation, Vehicles, Land &
Building etc

the asset which generate long term revenues more than one
accounting

These assets are held by the business for more than one
accounting period. fixed assets may be two types.
Tangible assets
intangible assets

Irrespective of nature and type of business, there are two
types of Assets. They are fixed assets and Current Assets.
Current assets are those assets which can be easily
converted into cash within a period of generally say one
year. Fixed Assets are those assets which can be touched,
felt and can be seen. The Benefits of fixed assets can be
derived more than one accounting period i.e, the benefit
can be derived for more than 12 months. Examples of Fixed
Assets are Plant & Machinery, Furniture, premises, Vehicles
etc.,

fixed assets are those which cannot be converted into
cash....fixed assets remains for a considerable period of
time..example of fixed assets are land
&buildings,furniture,machinery etc.....