Business, Legal & Accounting Glossary
An asset that is held by an enterprise for use in the production or supply of goods or services, for rental to others, or for administrative purposes on a continuing basis in the reporting entity’s activities.
Fixed assets, also known as tangible assets or property, plant and equipment, is a term used in accounting for assets and property that cannot easily be converted into cash. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).
Non-current asset, also known as property, plant, and equipment (PP&E), is a term used in accountancy for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are referred to as fixed.
Fixed assets normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, and plant and machinery. These often receive favourable tax treatment (depreciation allowance) over short-term assets.
We have a substantial fixed asset base of £6 billion, producing £4 billion of sales.
It is not a fixed asset as there is no intention to use it within the company.
The results show that growth and fixed asset turnover are positively correlated to return on equity while debt is negatively correlated to return on equity.
The money paid to purchase a fixed asset or capital asset.
The term “depreciation” refers to the systematic amortisation of the depreciable amount through a definite method during the useful life of the fixed asset.
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This glossary post was last updated: 23rd April, 2020 | 3 Views.