fixed asset

  

Definition

An asset that is not consumed or sold during the normal course of business, such as land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items.

Fixed assets enable their owner to carry on its operations. In accounting, fixed does not necessarily mean immovable; any asset expected to last, or be in use for, more than one year is considered a fixed asset. On a balance sheet, these assets are shown at their book value (purchase price less depreciation).


Use fixed asset in a sentence

  • Sometimes having your business run with a fixed asset will make you more money because there are little production costs.

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  • Owning a fixed asset can be a great investment opportunity as long as people keep coming back to use it

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  • The industrial shredders finally arrived, adding yet another fixed asset to the long list of machines and equipment that the company had spent big money on over the years.

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