What are Fixed assets?

Fixed assets (Definition)

Fixed assets are items that have been purchased by a business that are not easily converted back into cash. They often require more effort to return their cash value to the business. Fixed assets can also be referred to as long-term assets or non-current assets. Fixed assets are purchased because they are expected to last longer than a year or be converted into cash after at least one year. As a result of this a business can depreciate the value of the asset for the day-to-day wear and tear associated with the use of the asset. They are most often in the form of equipment, property, and plant. Other fixed assets include computer equipment, software, furniture, machinery, and vehicles.