Is tangible, long-term assets that a company owns and uses to produce goods or services and generate revenue. Fixed assets are expected to be held for more than one year, are typically depreciated over their useful lives — except for land — and appear on the balance sheet as property, plant, and equipment (PP&E).

Fixed assets are essential for several reasons. They can:

• >> Help a company provide services and goods to customers and generate revenue
• >> Educate creditors and investors on the financial health of a company
• >> Indicate that a business may be in a high-growth mode