Fixed assets are long-term assets a business uses to run its operations, rather than items it buys to use up quickly. In plain English, they are the things a company keeps and uses over time, such as buildings, machinery, equipment, or software. In accounting, fixed assets are usually recorded on the balance sheet and then depreciated, meaning their cost is spread across the years they help generate value.
Fixed assets matter because they are a core part of how accountants show the long-term resources a business uses to earn income. They also help explain depreciation, which is the gradual allocation of an asset's cost over time. That makes the number useful for understanding the structure of a business's assets and how its costs are recognized, but not for reading it as a direct measure of market value or performance.
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