Generally, fixed assets are the property with a useful life greater than one month, often more than one year. Fixed assets are not purchased for immediate resale or as materials for production , they are intended by the entity for usage in production or other business activities.
Here are some categories of fixed assets:
- Buildings
- Computer equipment
- Computer software
- Furniture and fixtures
- Machinery
- Vehicles
Also, you can use intangible assets. For available types of operations with fixed assets, see Overview of Fixed Asset Management.
Generally, fixed assets appear on the balance sheet in the Property, Plant, and Equipment (PP&E) section.
In this section