Fixed Asset

Fixed assets are long-term tangible assets that companies use in their day-to-day operations to drive revenue. Property, plant and equipment i.e. buildings, land, machinery, furniture, computers and vehicles are classed as fixed assets. In an accounting context (with the exception of land), fixed assets are attributed a useful life and are depreciated in the accounts annually over that useful life. They are deemed to be illiquid assets that can’t be converted quickly to cash.