Fixed Asset Homework Help

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What is a fixed asset?

An asset for a company is an entity that helps the company to generate revenue for a long time by using that asset. On the other hand many economists have defined asset as an entity whose value increases with time. It’s a matter of time that a company sells and purchases assets. Any asset that is fixed and cannot be sold for a particular financial accounting period is termed as a fixed asset. In our fixed asset homework help article, they are highlighted as tangible and non-current in nature and can be used in business operations.

Some examples of fixed assets

Our fixed asset homework help article writers have compiled a few examples to look over and understand fixed assets.

• Buildings
• Computer equipments and software
• Furniture and fixtures
• Leasehold improvements
• Machinery and vehicles

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Types of accounting transactions for fixed assets

Initially being recorded in an asset, as per our fixed asset homework help article writers, fixed assets are later on subjected to the following categories of accounting transactions

1. For tangible assets it is periodic depreciation and for intangible assets, amortization.
2. If the value of an asset goes below its net book value it is recorded under impairment write downs.
3. Once the assets are completely used and disposed, they are considered under disposition accounting transactions.

Fixed asset turnover ratio in fixed asset homework help article

Fixed Assets Turnover Ratio = Net Revenue / Aggregate Fixed Assets
Where,
Net Revenue = Gross Revenue – Sales Return
Aggregate Fixed Assets = Fixed Assets – Total Depreciation

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