Definition of Fixed Assets
Fixed assets are a company’s tangible, noncurrent assets that are used in its business operations. The word fixed indicates that these assets will not be used up, consumed, or sold in the current accounting year.
A company’s fixed assets are reported in the noncurrent (or long-term) asset section of the balance sheet in the section described as property, plant and equipment. The fixed assets except for land will be depreciated and their accumulated depreciation will also be reported under property, plant and equipment.
Examples of Fixed Assets
Some of a manufacturer’s fixed assets include:
- Land, land improvements, buildings
- Machinery and equipment
- Trucks, automobiles
- Furniture and fixtures
- Computer systems
