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what is mean by fixed assets Related: 01- Some Basic Accounting Termi...
Fixed Asset
A fixed asset is anything that has commercial or exchange value, generates revenue, has a life longer than one year and has a physical form.

Example of a Fixed Asset
Let’s assume XYZ Company intends to purchase an office building for $10 million. The building has a physical form, will last longer than a year and generates revenue, making it a fixed asset. When the company executes a legal purchase agreement with the seller, XYZ Company will have a place from which to conduct its business operations, and it will control what happens to the building from that point forward. Thus, XYZ Company acquired a $10 million asset and should reflect this fixed asset on its balance sheet.
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what is mean by fixed assets Related: 01- Some Basic Accounting Terminologies - Class 11 - Accountancy?
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