Match the term with its definition.
-Physical assets that will be used in the business for more than one year, such as equipment, buildings, and land
A)accounts payable (trade credit)
B)accounts receivable
C)accumulated depreciation
D)common stock
E)current assets (working capital)
F)current debt (short-term liabilities)
G)current ratio
H)fixed assets (property, plant, and equipment [PPE])
I)gross fixed assets
J)net fixed assets
K)other assets

Question

Quizplus · Accepted Answer

Fixed assets (property, plant, and equipment [PPE]) are physical assets that will be used for more than one year in the business and include equipment, buildings, and land. Choice A is accounts payable (trade credit), choice B is accounts receivable, choice C is accumulated depreciation, choice D is common stock, choice E is current assets (working capital), choice F is current debt (short-term liabilities), choice G is current ratio, choice I is gross fixed assets, and choice J is net fixed assets. Choice K is other assets not specifically categorized as current or fixed assets.

Match the Term with Its Definition