An example of a fixed asset is
A) a delivery truck for sale by an automotive dealer.
B) inventory.
C) a delivery truck used by a grocer to deliver merchandise to customers.
D) short-term investments in stock.

Question

Quizplus · Accepted Answer

A delivery truck that is used by a grocer for business purposes is considered a fixed asset, as it is a tangible asset with a useful life longer than one year and is used to generate income. A delivery truck for sale by an automotive dealer would be considered inventory, and short-term investments in stock are not fixed assets.

An Example of a Fixed Asset Is