Fixed Assets
Long-term business assets lasting >1 year: property, equipment, vehicles, technology.
Formula
Net Book Value = Cost − Accumulated Depreciation
Real World
Amazon's warehouses, robotic picking systems, and delivery vans are all fixed assets — they underpin daily operations and appear on the balance sheet for years.
Exam Focus
Distinguish fixed from current assets by the one-year rule; misclassifying inventory as a fixed asset is a common error that loses marks.
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