Fixed Assets
Long-term business assets lasting >1 year: property, equipment, vehicles, technology.
Formula
Net Book Value = Cost of Asset − Accumulated Depreciation
Real World
Ryanair's fleet of Boeing 737 aircraft appears on its balance sheet as fixed assets worth billions, depreciating in value each year as the planes age.
Exam Focus
Fixed assets are not expensed immediately — depreciation spreads the cost; confusing this with current assets is a common exam error.
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