What type of assets include equipment, buildings, and land?

What type of assets include equipment, buildings, and land?

• A. Current Assets
• B. Fixed Assets
• C. Intangible Assets
• D. Operating Assets

Answer: (B)

Fixed assets are long-term tangible assets that a company uses in its operations to generate income. These assets are not intended for sale in the regular course of business and typically have a useful life of more than one year. Equipment, buildings, and land fall into this category as they are crucial for the day-to-day functioning of a business. Current assets, on the other hand, are short-term assets expected to be converted into cash or used within a year, such as inventory and accounts receivable. Intangible assets refer to non-physical assets such as patents, trademarks, and goodwill, which do not have a physical presence but hold significant value for a company. Operating assets encompass both fixed and current assets used in the operations of a business, but the specific assets mentioned—equipment, buildings, and land—are classified specifically as fixed assets. Thus, identifying these assets as fixed assets aligns with their role in long-term investment and operational capacity.

Fixed assets are long-term tangible assets that a company uses in its operations to generate income. These assets are not intended for sale in the regular course of business and typically have a useful life of more than one year. Equipment, buildings, and land fall into this category as they are crucial for the day-to-day functioning of a business.

Current assets, on the other hand, are short-term assets expected to be converted into cash or used within a year, such as inventory and accounts receivable. Intangible assets refer to non-physical assets such as patents, trademarks, and goodwill, which do not have a physical presence but hold significant value for a company. Operating assets encompass both fixed and current assets used in the operations of a business, but the specific assets mentioned—equipment, buildings, and land—are classified specifically as fixed assets.

Thus, identifying these assets as fixed assets aligns with their role in long-term investment and operational capacity.