What is Fixed Assets (FA)?

Fixed Assets (FA) refers to long-term tangible pieces of property or equipment that a company owns and uses to generate income. These assets are not easily converted into cash and are expected to be used for more than one accounting period. Common examples include land, buildings, machinery, vehicles, furniture, and computer equipment. Fixed asset management involves tracking the purchase, depreciation, maintenance, and disposal of these assets. Companies use FA to conduct their business operations.