FIXED ASSETS Definition

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FIXED ASSETS are those assets of a permanent nature required for the normal conduct of a business, and which will not normally be converted into cash during the ensuring fiscal period. For example, furniture, fixtures, land, and buildings are all fixed assets. However, accounts receivable and inventory are not. Sometimes called PLANT.

An indicator of a sustainable competitive advantage is if valuable assets on the books at valuation indicate that they are valued at < market price. If so, it may tell about the mindset of the firm's management looking for sustainable competitive advantages.

Learn new Accounting Terms

REVENUE ADJUSTMENT is a journal entry to either increase or decrease revenue based upon new data; thereby either increasing or decreasing cash.

FIRM is members of a business organization that owns or operates one or more establishments, e.g. a legal or accounting firm.

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