Business glossary
Fixed assets
Long-term tangible resources used in business operations rather than held for resale.
Example
A work vehicle or machine bought for repeated business use may be a fixed asset. Keep the purchase cost, acquisition date, use records and relevant disposal or depreciation information.
How it differs from related terms
Fixed assets support operations over time; inventory is generally held for sale or consumed in delivering work. The accounting and tax treatment of equipment need not be identical, so retain the underlying purchase record.
Frequently asked questions
What is an example of fixed assets?
A work vehicle or machine bought for repeated business use may be a fixed asset. Keep the purchase cost, acquisition date, use records and relevant disposal or depreciation information.
How should fixed assets be interpreted?
Fixed assets support operations over time; inventory is generally held for sale or consumed in delivering work. The accounting and tax treatment of equipment need not be identical, so retain the underlying purchase record.