A physical piece of property, plant, or equipment (PP&E) is referred to as a fixed asset; it is also referred to as a non-current asset. An asset is considered fixed since it is something that a company will not consume, sell, or convert to cash throughout the accounting year.
Current, non-current, physical, intangible, operating, and non-operating assets are all common asset kinds. The ability to correctly identify and classify asset kinds is crucial to a company's survival, particularly its solvency and associated risks.
Fixed assets are assets that are held for use in the production or delivery of products or services, for rental to others, or for administrative purposes, and are expected to be used over a period of time.
Cash, inventory, vehicles, equipment, buildings, and investments are examples of tangible assets. Accounts receivable, pre-paid expenses, patents, and goodwill are examples of intangible assets that do not have a physical form.