Building
Furniture
Cash
Machinery
Answer is Right!
Answer is Wrong!
The correct answer is C. Cash.
A fixed asset is an asset that a company owns and uses for more than one year. It is not intended for sale in the ordinary course of business. Examples of fixed assets include buildings, furniture, machinery, and equipment.
Cash is a current asset, which means it is expected to be converted into cash within one year. It is not a fixed asset because it is not used for more than one year.
Here is a brief explanation of each option:
- Building: A building is a fixed asset because it is used for more than one year. It is not intended for sale in the ordinary course of business.
- Furniture: Furniture is a fixed asset because it is used for more than one year. It is not intended for sale in the ordinary course of business.
- Machinery: Machinery is a fixed asset because it is used for more than one year. It is not intended for sale in the ordinary course of business.
- Cash: Cash is a current asset, which means it is expected to be converted into cash within one year. It is not a fixed asset because it is not used for more than one year.