Permanent items like land, buildings, and equipment?

Permanent items like land, buildings, and equipment?

• A. Intangible Assets
• B. Current Liabilities or Short-Term Liabilities
• C. Fixed Assets or Long-Term Assets
• D. Securities

Answer: (C)

Permanent items like land, buildings, and equipment are long-term tangible assets used in day-to-day operations. They’re expected to provide value for more than one year, so they sit on the balance sheet as fixed assets (also called long-term assets). Land is a fixed asset that typically doesn’t depreciate, while buildings and equipment are fixed assets that are depreciated over their useful lives to reflect wear over time. This category is different from intangible assets (non-physical items like patents) and from securities (financial investments). It’s also not a current liability, which would be an obligation due within a year. So, land, buildings, and equipment are best described as fixed assets or long-term assets.

Permanent items like land, buildings, and equipment are long-term tangible assets used in day-to-day operations. They’re expected to provide value for more than one year, so they sit on the balance sheet as fixed assets (also called long-term assets). Land is a fixed asset that typically doesn’t depreciate, while buildings and equipment are fixed assets that are depreciated over their useful lives to reflect wear over time. This category is different from intangible assets (non-physical items like patents) and from securities (financial investments). It’s also not a current liability, which would be an obligation due within a year. So, land, buildings, and equipment are best described as fixed assets or long-term assets.