A fixed asset is a long-lived asset held for continuing business use rather than near-term sale and is commonly depreciated or otherwise allocated over time.
A fixed asset is a long-lived asset the business uses in operations rather than holding for near-term sale. Fixed assets support production, administration, logistics, or other continuing activities and are generally classified outside the current-asset section of the balance sheet.
In many accounting contexts, the term overlaps with property, plant, and equipment, although some legacy usage also groups certain longer-term noncurrent assets under the same umbrella.
Fixed assets are typically capitalized and then allocated over time through depreciation, except for assets such as land that are not normally depreciated.
They may also be tested for impairment or written down if their recoverable value falls.
That distinction matters because the two categories behave very differently in liquidity, turnover, and valuation analysis.