WHAT ARE FIXED ASSETS?
Fixed Assets are regarded as the most crucial component of a company with which it is able to function and offer its variety of services and/or products. So, what are fixed assets?
Fixed Asset, as identified in the accounting standards, is every tangible and intangible item or piece of property that a company possesses for a long term use either by purchasing it or acquiring it in any other form may be, in order to be used in the production process or in supplying goods and services. It is obvious from the definition that fixed assets are not to be sold or dealt with to gain any profit but rather are used to accomplish the different production processes of the company and they are not likely to be converted quickly into cash.
For instance, the computer and the printer are a company’s fixed assets. Fixed assets can range from simple and tiny tools to large, complex and specialized equipment, this also includes the very land and building in which the company operates.