Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
2- Why is the fixed asset riskier than current asset?
Expert Solution
Step 1 Defitinitons
Fixed Assets are the assets invested by the company to be with the firm for more than 12 months. These are long term assets that are used to produce goods that are sold by the firm to attain profit. For Example: Plant & Machinery
Whereas,
Current Assets are assets held by firm for less than 12 months and are more liquid in nature in order to settle short term liabilities
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