Fixed assets

Definition

Fixed assets are long-term tangible assets that a company owns and uses in its operations to generate income. These assets are not expected to be converted into cash within a year and include items like property, plant, and equipment (PP&E).

Related terms

Depreciation:

The process of allocating the cost of a tangible asset over its useful life.

Capital Expenditure: Money spent by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Balance Sheet:

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time