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Which of the following is an example of a fixed asset?

A. Money in the bank

B. Accounts payable

C. Gross profit

D. Real estate

User Adrianopolis
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1 Answer

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Answer:

D. Real estate

Step-by-step explanation:

Fixed assets are physical resources belonging to a business. There are tangible and valuable items that a business owns. A firm uses fixed assets to generate income in the current and future periods.

Fixed assets have a useful life exceeding the current financial year. They are not meant for sale in the short run but to help a business generate income for many years to come. From the list provided, real estate is a fixed asset. Other examples of fixed assets include motor vehicles, machinery, and equipment.

User SumOne
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