Which of the following is a fixed asset?
A) a delivery truck for sale by an automotive dealer
B) the money owed to the company by customers
C) a delivery truck used by a grocer to deliver merchandise to customers
D) short-term investments in stock

Question

Quizplus · Accepted Answer

Fixed assets are long-term assets used in the operation of a business, such as property, equipment, and vehicles. Option C describes a delivery truck used for business purposes, which qualifies as a fixed asset. Option A describes a delivery truck being sold, which is not a fixed asset because it is not being used for business purposes. Option B describes accounts receivable, which is an asset but not a fixed asset. Option D describes short-term investments, which are also not fixed assets.

Which of the Following Is a Fixed Asset