A characteristic of a fixed asset is that it is
A) intangible
B) used in the operations of a business
C) held for sale in the ordinary course of the business
D) a long term investment

Question

Quizplus · Accepted Answer

A fixed asset is a tangible asset that is used in the operations of a business for a long period of time. Therefore, the correct choice is B. Intangible assets are not physical assets, so A is incorrect. Fixed assets are not held for sale in the ordinary course of business, making C incorrect. D is incorrect because although fixed assets are long term, they are not necessarily investments.

A Characteristic of a Fixed Asset Is That It Is