How can we determine the Acquisition of Fixed Assets?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How can we determine the Acquisition of Fixed Assets?

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Step 1 Meaning of Fixed assets

Fixed Assets- Fixed Assets are those assets which are acquired for the purpose of:

  1. production or supply of goods or ,
  2. Services for Long term use,
  3. for rental purpose to others
  4. Administration purpose

Here , "Fixed " means those assets which are not to be consumed or sold within a year having physical presence used by the companies for the generation of income. These assets cannot be converted into cash easily .

For Example:Land , Furniture , Building etc.

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