
Fixed Assets are also known as long-term assets or non-current assets. It is the appreciable and tangible possession of good or property (plant or equipment) which is also stated as PP&E in the financial statement. The word fixed in these types of assets stands for those items that you cannot use up, sell or transform in cash within one fiscal year of accounting. Most of the businesses occupy some of these kinds of assets. It represents the capital of your assets.
Fixed assets are distinct from inventory in a way that inventory occurs for the use of entity itself.
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