fixed asset
Long-term holding
A fixed asset is property a business owns and uses over the long term rather than selling—buildings, equipment, machinery, vehicles, land.
Accountants distinguish fixed assets from current assets like inventory or cash because they're not easily converted to money.
Fixed assets typically depreciate over time: The company's fixed assets include three manufacturing plants.
Collective mechanical equipment
- equipmentTools for a task
- buildingsConstructed enclosed structures
- vehiclesMachines for transportation
- landEarth's solid surface
plant · furniture · fixtures · hardware · tools · factory · warehouse · infrastructure
Expected functional duration
- straight-lineWithout curves or bends
- salvage valueAsset's worth when retired
- residual valueWorth after depreciation ends
- amortizationGradual debt reduction schedule
impairment · write-off · cost recovery · obsolescence · wear and tear · revaluation · deterioration · disposal
Assets-liabilities-equity report
- book valueAsset minus accumulated depreciation
- capitalizationUsing big letters properly
- acquisition costTotal expense to acquire
- capital expenditureSpending on fixed assets
GAAP · financial statement · ledger · journal entry · recognition · measurement · reporting · disclosure
Land and its structures
- premisesProperty with buildings
- facilitySkill or equipped premises
- siteDesignated location
- freeholdPermanent property title
leasehold · title · deed · parcel · acreage · holdings · estate · plot
Funds for durable assets
- acquisitionAct of obtaining something
- procurementObtaining goods externally
- purchaseGoods obtained for payment
- allocationDistribution of shares
expenditure · outlay · funding · financing · cost-benefit · payback period · ROI · strategic investment
machinery
Collective mechanical equipment
- equipmentTools for a task
- buildingsConstructed enclosed structures
- vehiclesMachines for transportation
land · plant · furniture · fixtures · hardware · tools · factory · warehouse · infrastructure · computer systems
useful life
Expected functional duration
- straight-lineWithout curves or bends
- salvage valueAsset's worth when retired
- residual valueWorth after depreciation ends
amortization · impairment · write-off · cost recovery · obsolescence · wear and tear · revaluation · deterioration · disposal · retirement
balance sheet
Assets-liabilities-equity report
- book valueAsset minus accumulated depreciation
- capitalizationUsing big letters properly
- acquisition costTotal expense to acquire
capital expenditure · GAAP · financial statement · ledger · journal entry · recognition · measurement · reporting · disclosure · audit
real estate
Land and its structures
freehold · leasehold · title · deed · parcel · acreage · holdings · estate · plot · commercial property
capital investment
Funds for durable assets
- acquisitionAct of obtaining something
- procurementObtaining goods externally
- purchaseGoods obtained for payment
allocation · expenditure · outlay · funding · financing · cost-benefit · payback period · ROI · strategic investment · modernization
- financial termswealth, currency, balance sheet, audit, debit
- depreciationdepreciation, straight line, straight-line, vehicle depreciation, accelerated
fixed assetliquid asset
Easily converted wealth
cash · accounts receivable · inventory · working capital · money market funds
fixed assetconsumable
Designed to be depleted
supplies · raw materials · work in progress · perishable goods · operating expense
fixed assetintangible asset
Valuable right without substance
financial asset · goodwill · intellectual property · patent · trademark
fixed, asset, fix, fixes, fixing, fixer, fixable, fixation, fixate