What is a Fixed Asset?
A Fixed Asset is an items such as buildings, cars, furniture, plant and machinery etc.
A Fixed Asset is anticipated to be of continued value to a business over a period of years. Because of this useful life, their cost is not charged to the profit and loss account in the year of purchase, but is written off over a number of years using an appropriate depreciation method. This ensures that the cost is matched with the benefit derived from the asset in each period.
For further information on Fixed Asset see the Wikipedia definition.
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