Explain the term Fixed Assets
Explain the term Fixed Assets and what are their advantages in production or business aims?
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Fixed Assets are such assets that are employed for production or business aims. Its advantages are acquired by company in lots of years after its purchasing. Such assets are not purchased for selling aims however only employed for trading and offering better services. In such assets, we can comprise land and building, plant and machinery, computers, vehicles, and equipments and so on. Such assets are illustrated in the asset side of balance sheet. We charge depreciation on such assets and exhibit depreciation as loss in the gain and loss account of company and subtract current year depreciation from specific assets in the balance sheet.
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