Fixed assets also known as tangible assets or property, plant and equipment (PP & E) are a term used to account for assets and properties that can not easily be converted into cash. Which can be compared to current assets. Only tangible assets are termed as fixed. AS 16 defines fixed assets as assets whose future economic benefit is likely to flow into the entity, the cost of which can be defined as an asset not directly sold To the consumers / end users of a company. For example, the current assets of a baking company would be its inventory (in this case Flour, yeast, etc.), the value of sales due to the company through credit (Ie debtors or accounts receivable), cash in the bank, etc..
LITERATURE REVIEW
Fixed assets also known as non-current assets or property, plant and equipment (PP & E) are a term used to account for assets and properties that can not easily be converted into cash. This can be compared to current assets, such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are called fixed. In addition, a fixed / non-current asset can also be defined as an asset that is not sold directly to the consumers / end-users of a company. As an example, the current assets of a baking company would be its inventory (in this case, flour, yeast, etc.), the value of sales due to the company through credit (ie debtors or accounts receivable) Etc. Its non-current assets would be the kiln used for baking bread, motor vehicles used to transport deliveries, cash registers used to handle cash payments, etc. Each non-current asset mentioned above is not sold directly to consumers.