Fixed Assets

Fixed assets are long-term tangible assets used in a business to produce income.

Explanation:
Also called property, plant, and equipment (PPE), these assets are not intended for sale. They are depreciated over time.

Example:
Buildings, vehicles, and machinery are fixed assets.

Importance:
Fixed assets are essential for operations and are a major part of a company’s investment.

Common Confusion:
Fixed assets are not current assets—they provide value over many years.