Fixed Asset

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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".

INVESTOPEDIA EXPLAINS 'Fixed Asset'

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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  5. What are some examples of fixed assets?

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

    Current assets, or short-term assets, are assets that can be converted into cash within one fiscal year or one operating ... Read Full Answer >>
  8. What is the difference between a fixed asset and a current asset?

    Fixed assets are long-term, tangible assets such as land, equipment, buildings, furniture and vehicles. Fixed assets are ... Read Full Answer >>
  9. What is the difference between tangible and intangible assets?

    Tangible assets are physical assets such as land, vehicles, equipment, machinery, furniture, inventory, stock, bonds and ... Read Full Answer >>
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