What Is Fixed Asset

Fixed Asset

Fixed assets are those assets that are required for constantly use in doing the business. Proprietor purchase fixed assets because they want growing own business. therefore, It is not for sale. It is long Term resources of a business. The fixed assets are used to operate the business and to earn the profit. These assets may be a tangible asset or intangible.
Example of Fixed assets

• Machinery

• Land

• Building

• Furniture etc.

  Usually, the subject of these assets is not changed. Because fixed assets value cost less deprecation. If we sell fixed assets and earn a profit on the sale. So, this asset is capital profit.