Fixed assets are assets that:

• A. Mature in less than one year
• B. Exceeds one year and depreciates overtime
• C. Are cash equivalents
• D. Generate revenue immediately

Answer: (B)

Fixed assets are long-lasting tangible resources that a business uses in its operations over multiple years. Their key feature is their extended useful life, typically more than one year, which means their cost is allocated over time through depreciation rather than expensed all at once. This reflects how they support production and services across many periods rather than delivering value immediately in a single period. Examples include buildings, machinery, equipment, and vehicles (with land treated as a fixed asset but not depreciated). They aren’t cash or near-cash items, and they don’t generate revenue instantly on purchase; instead, they contribute to operations over time.