Fixed Asset

Business, Legal & Accounting Glossary

Definition: 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

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Fixed Asset. Payroll & Accounting Heaven Ltd. September 23, 2021
Chicago Manual of Style (CMS):
Fixed Asset. Payroll & Accounting Heaven Ltd. (accessed: September 23, 2021).
American Psychological Association (APA):
Fixed Asset. Retrieved September 23, 2021, from website:

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: 23rd April, 2020 | 6 Views.