Question

Production facilities, office equipment, and heavy machinery are assets that are expected to last many years and are called long-term or ________ assets.

a) Fixed
b) Flex
c) Current
d) Principal

Answer 1

Fixed assets are long-term assets that cannot easily be increased or decreased. Examples include machinery, equipment, research and development costs, and advertising.

Step-by-step explanation:

Production facilities, office equipment, and heavy machinery are assets that are expected to last many years and are called long-term or Fixed assets. Fixed assets refer to assets that cannot easily be increased or decreased in a short period of time, and they define a firm's maximum output capacity. Examples of fixed assets include the cost of machinery or equipment to produce a product, research and development costs, and even expenses like advertising.