Fixed Asset


DEFINITION of 'Fixed Asset'

A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time.

Fixed assets are sometimes collectively referred to as "plant".

To learn more about asset classes, check out "What is the difference between tangible and intangible assets?"


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Buildings, real estate, equipment and furniture are good examples of fixed assets.

Generally, intangible long-term assets such as trademarks and patents are not categorized as fixed assets but are more specifically referred to as "fixed intangible assets".

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  8. How do you account for changes in the market value of various fixed assets?

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  9. What is the difference between fixed assets and current assets?

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  10. What is the relationship between accumulated depreciation and depreciation expense?

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  12. What are some examples of fixed assets?

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  13. What are the different ways to calculate depreciation for tangible assets?

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  15. What is the difference between a fixed asset and a current asset?

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