Question:
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 long term investment
Answer:
The correct option is b. used in the operations of a business
Explanation:
A fixed asset is something that a company owns for a long time and uses to help it make money. For example, this could be things like buildings, machinery, vehicles, or furniture. These are things that the company needs to do its work, and they aren’t meant to be sold as part of the regular business.
In simpler terms, a fixed asset is a valuable thing that helps a company do its job, and it’s not something that the company plans to sell anytime soon.
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