Defining Fixed Asset
A fixed asset is defined as a tangible fragment of property that a company has for a prolonged duration of time which is vitally used for production of goods and generate revenue, it is not intended for the purpose of selling off for at least an year. Group of fixed asset of a company is called plant.
More can be learned about asset classes and the contrast among intangible and tangible assets.
Understanding Fixed Asset
Some classic fixed assets are equipment, furniture, real estate, and buildings.
The resources which do not come under fixed assets are the long term intangible assets like patents and trademarks and are rather referred as fixed intangible assets.
For the return of goods or services, a fixed asset is bought by the company either for other company’s use or for the purpose of renting it out. Property, plant and equipment (PP&E)is a term referred for asset can contain tangible things such as computer PC and intangible things, like a trademark, copyright, goodwill and patent.
Fixed Assets and some example
Fixed assets can have vehicles, computer equipment, buildings, furniture, land, software and machinery. A classic example logistics company are its delivery vehicles and trucks. If a firm is in possession of a parking lot then the fixed asset of that company would be that parking-lot.