Fixed Asset

Business, Legal & Accounting Glossary

Definition: Fixed Asset


Fixed Asset

Quick Summary of Fixed Asset


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.




What is the dictionary definition of Fixed Asset?

Dictionary Definition


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).


Full Definition of Fixed Asset


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.


Examples of Fixed Asset in a sentence


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.


Synonyms For Fixed Asset


fixed assets, capital assets, core funds, tangible assets, fixed capital


Fixed Asset FAQ's


What Is A Fixed Asset?

A long-term, tangible asset held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, and furniture. also called plant.


Cite Term


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March 19, 2024 https://payrollheaven.com/define/fixed-asset/.
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Fixed Asset. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/fixed-asset/ (accessed: March 19, 2024).
American Psychological Association (APA):
Fixed Asset. PayrollHeaven.com. Retrieved March 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/fixed-asset/

Definition Sources


Definitions for Fixed Asset are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.