Fixed assets are long-term, tangible resources that a business owns and uses in its operations to generate income.
Unlike current assets, which are expected to be used or converted into cash within a year, fixed assets are not easily liquidated and typically have a useful life of more than one year.
Examples include buildings, machinery, vehicles, equipment, and land. These assets are recorded on the balance sheet and gradually depreciated over time to reflect wear and tear or obsolescence.
Fixed assets are essential for production and daily operations, and they represent a significant investment in the long-term growth of a business.