Fixed asset is a long term tangible property that firm owns and uses it for generating income.
Fixed asset is a non-current asset, like current assets Fixed assets are not consumed or converted into cash within one year.
Fixed assets are those assets whose useful life is more than one reporting period. Examples of fixed assets are plant & machinery, land & building etc;
Fixed assets are not easily convertible into cash like current assets. Current assets are liquid assets which are easily Convertible into cash.
Amount spent on fixed asset is spread over a useful life of an asset and is charged as expense in profit & loss a/c with the name depreciation every year.
Fixed asset is a non-current asset, like current assets Fixed assets are not consumed or converted into cash within one year.
Fixed assets are those assets whose useful life is more than one reporting period. Examples of fixed assets are plant & machinery, land & building etc;
Fixed assets are not easily convertible into cash like current assets. Current assets are liquid assets which are easily Convertible into cash.
Amount spent on fixed asset is spread over a useful life of an asset and is charged as expense in profit & loss a/c with the name depreciation every year.
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