ECONOMICS

Detailed explanation-1: -The term fixed asset refers to a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. The general assumption about fixed assets is that they are expected to last, be consumed, or be converted into cash after at least one year.

Detailed explanation-2: -Current Assets In accounting, some assets are referred to as current. Current assets are short-term economic resources that are expected to be converted into cash or consumed within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, and various prepaid expenses.

Detailed explanation-3: -A business asset is an item of value owned by a company. Business assets span many categories. They can be physical, tangible goods, such as vehicles, real estate, computers, office furniture, and other fixtures, or intangible items, such as intellectual property.

Detailed explanation-4: -Fixed assets are often referred to as property, plant, and equipment, or PPE-the three most common kinds of fixed assets.

Detailed explanation-5: -Operating Assets In other words, operating assets are used to generate revenue from a company’s core business activities. Examples of operating assets include: Cash. Accounts receivable.