What are fixed assets typically characterized as?

Fixed assets are characterized as items that are relatively permanent because they are long-term resources that a company uses in its operations to generate revenues. These assets typically include infrastructure like buildings, machinery, and vehicles, which are not intended for sale in the normal course of business. Instead, they provide value over an extended period, usually exceeding one year.

Their permanence is essential because fixed assets require significant investment, and their depreciation is taken into account over their useful life. This characteristic distinguishes fixed assets from other types of items such as inventory or temporary supplies, which are not held for long-term use. The long-term nature of fixed assets is crucial for financial planning and stability within a business.