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 short-term investment

Question

Quizplus · Accepted Answer

A fixed asset is a tangible asset that is used in the operations of a business and has a useful life of more than one accounting period. Option A is incorrect as a fixed asset is tangible and not intangible. Option C is incorrect as a fixed asset is not held for sale, but rather used to help generate revenue. Option D is incorrect as a fixed asset is a long-term investment.

A Characteristic of a Fixed Asset Is That It Is