Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment?
A)employee parking lot
B)production equipment for assembling engines
C)shipping area for finished goods and receiving area for component parts
D)cans of yellow paint for refurbishing equipment
E)warehouse building for storing finished equipment

Question

Quizplus · Accepted Answer

Fixed assets are long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year. Examples include buildings, machinery, and land. The cans of yellow paint for refurbishing equipment are considered inventory or supplies, not fixed assets, because they are expected to be consumed within the business's operational cycle, typically within a year.

Which of the Following Assets Is NOT an Example of a Fixed