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Pick up the correct answer from the given choices(only one correct answer):
Q. Fixed assets are
- a)kept in the business for use over a long time for earning income
- b)meant for resale
- c)meant for conversion into cash as quickly as possible
- d)All of the above
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Pick up the correct answer from the given choices(only one correct ans...
Fixed assets are long-term tangible assets that a business uses in its operations to generate income. They are not intended for resale in the normal course of business. Here’s a breakdown of the options:
- A: kept in the business for use over a long time for earning income: This is correct. Fixed assets, such as machinery, buildings, and equipment, are utilized over an extended period to support the company's operations and generate revenue.
- B: meant for resale: This is incorrect. Fixed assets are not primarily meant for resale; they are used in the production of goods or services.
- C: meant for conversion into cash as quickly as possible: This is also incorrect. Fixed assets are not intended to be liquidated quickly; they are long-term investments.
- D: All of the above: Since options B and C are incorrect, this option cannot be true.
Thus, the only accurate statement about fixed assets is option A.
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Pick up the correct answer from the given choices(only one correct ans...
Fixed assets
Fixed assets refer to the long-term assets that are held by a business for the purpose of generating income. These assets are not intended for resale and are not easily convertible into cash. Fixed assets are generally used over a period of time, usually more than a year, and they are considered to be critical to the operations of the business.
Types of fixed assets
Fixed assets can be categorized into the following types:
1. Tangible fixed assets
Tangible fixed assets are physical assets that can be seen and touched. These include assets such as land, buildings, machinery, and equipment.
2. Intangible fixed assets
Intangible fixed assets are non-physical assets that cannot be seen or touched. These include assets such as patents, trademarks, copyrights, and goodwill.
Purpose of fixed assets
The primary purpose of fixed assets is to generate income for the business over the long term. Fixed assets are used in the production of goods or services, and they help the business to operate efficiently and effectively.
Conclusion
In conclusion, fixed assets are an essential part of any business as they help to generate income over the long term. They are not intended for resale and are not easily convertible into cash. Fixed assets can be categorized into tangible and intangible assets, and they play a critical role in the operations of the business.
Fixed assets refer to the long-term assets that are held by a business for the purpose of generating income. These assets are not intended for resale and are not easily convertible into cash. Fixed assets are generally used over a period of time, usually more than a year, and they are considered to be critical to the operations of the business.
Types of fixed assets
Fixed assets can be categorized into the following types:
1. Tangible fixed assets
Tangible fixed assets are physical assets that can be seen and touched. These include assets such as land, buildings, machinery, and equipment.
2. Intangible fixed assets
Intangible fixed assets are non-physical assets that cannot be seen or touched. These include assets such as patents, trademarks, copyrights, and goodwill.
Purpose of fixed assets
The primary purpose of fixed assets is to generate income for the business over the long term. Fixed assets are used in the production of goods or services, and they help the business to operate efficiently and effectively.
Conclusion
In conclusion, fixed assets are an essential part of any business as they help to generate income over the long term. They are not intended for resale and are not easily convertible into cash. Fixed assets can be categorized into tangible and intangible assets, and they play a critical role in the operations of the business.
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