Accounting glossary
What is fixed asset?
A long-lived asset held to run the business rather than to sell: equipment, vehicles, leaseholds, computers. Fixed assets are capitalized — put on the balance sheet — and expensed gradually through depreciation or CCA.
Example
A $30,000 van, $18,000 of shelving and a $6,000 walk-in cooler are fixed assets: held to run the business rather than to sell, and depreciated over their useful lives.
Stock, by contrast, is bought to be sold, so it is inventory rather than a fixed asset no matter how expensive it is.
In SeroBooks
A register with classes, CCA and book values, posting depreciation to the ledger. Fixed assets & CCA →
Nearby terms
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