Assets that are used continuously to generate revenues from the sale of goods

or services.

1) Fixed Assets
- Have a physical substance (a definite size and shape) and can be seen .
- Example : Building , vehicles , equipment , plant and machinery .
2) Intangible Assets
- Rights , privilleges and competitive advantages that result from ownership of
long-lived assets that do not possess physical substance .
- Example : Patents , copyrights , goodwill , trademarks , trade names and
franchises .
3) Long term investment
- Investments in stocks and bonds of other companies that companies normally
hold for many years .
- Long-term assets such as land and buildings , not currently being used in
operations .

Process of allocating to expense the cost of a fixed assets over its useful life in
a rational and systematic manner .

28
29