Fixed assets are assets that have a useful life of more than one year. Fixed assets include property, plant, and equipment and are recorded on the balance sheet.

A fixed asset has a physical form and is reported on the balance sheet as PP&E. Companies purchase fixed assets to produce goods or services, for office and operating use, or to rent to third parties.

How to Do a Balance Sheet for Self-Employment. ... Most balance sheets list current assets before fixed assets and often separate them into these categories for ease of reading.

Learn how to deal with abrupt and non-recoverable asset-value declines on the balance sheet. ... There's usually more nuance to fixed-asset impairments than this simple truck example suggests.

Fixed assets are depreciated over their useful lives to reflect wear and tear and to reduce the cost of the assets on the balance sheet. A company may also possess intangible fixed assets, such as ...