Fixed assets are long-term items a company owns to support its operations and generate income. These aren’t for quick sale and are meant to last beyond a single year. On the balance sheet, fixed assets fall under property, plant, and equipment (PP&E), and over time, they lose value through depreciation.
Fixed assets represent investments that fuel a company’s daily operations and future growth. Tracking these assets helps gauge a business’s overall financial standing. Since fixed assets serve over the years, their value is gradually depreciated, accurately reflecting their worth, contribution to income, and ongoing value to stakeholders.
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