a fixed asset

USAGE SUMMARY

The phrase "a fixed asset" is correct and usable in written English.
It is typically used in accounting and finance to refer to long-term tangible assets that are not expected to be converted into cash within a year. Example: "The company's balance sheet shows a significant increase in a fixed asset, indicating growth in its physical resources."

✓ Grammatically correct

Formal & Business

News & Media

Science

Wiki

Human-verified examples from authoritative sources

Exact Expressions

31 human-written examples

Wasting Asset (Fixed) Refers to a fixed asset, other than land, that has a limited useful life and is therefore subject to depreciation.

Forbes

In essence, entrepreneurs make four types of commitments: (1) sunk investments in long-lived or fixed assets like a building or a machine; (2) promises to pay a fixed amount over time to use a fixed asset (rent) or a person's time (salary); (3) borrowing money to expand; or (4) making working capital investments like inventory or customer credit, that eventually will be sold or recovered.

Forbes

They are, literally, a fixed asset.

The Economist

Furthermore, since it is not built in, it is not considered a fixed asset when calculating depreciation for tax purposes, Mr. Logan said.

The New York Times

By the 1930's, almost every studio in Hollywood had found it necessary to erect a New York street, nearly 20 in all, built not for any particular picture but as a fixed asset, to be reused time and again.

The New York Times

In the airline industry, yield management allows carriers to maximize revenue on a fixed asset by varying prices which is why there can be 20 different prices for the coach seats on a single flight.

Harvard Business Review

Human-verified similar examples from authoritative sources

Similar Expressions

29 human-written examples

Broader definitions of the sharing economy include peer-to-peer lending (though cash is hardly a spare fixed asset) or putting a solar panel on your roof and selling power back to the grid (though that looks a bit like becoming a utility).

The Economist

There are long-standing plans to build a gas pipeline from Trinidad to the eastern Caribbean, but pipelines are an expensive fixed asset and don't sit well with the idea of gas as a "bridge fuel" to the renewables era.

The Economist

Investors would be better off ignoring market advice and staying invested in an appropriate fixed asset allocation.

Forbes

The trading subsidiaries then claimed that the grant of the licence was a new intangible fixed asset, which enabled them to claim tax relief.

The Guardian

In today's China, SOEs receive as much as 30% of total loans, but only account for 16% of employment and less than a third of fixed asset investment.

Forbes

Expert writing Tips

Best practice

When discussing financial statements, clearly specify the type of "a fixed asset" you're referencing (e.g., land, buildings, equipment) for better clarity.

Common error

Avoid categorizing assets expected to be converted to cash within a year (like inventory or accounts receivable) as "a fixed asset". "A fixed asset" is characterized by its long-term nature.

Linguistic Context

The phrase "a fixed asset" primarily functions as a noun phrase, identifying a specific type of long-term, tangible property owned by a business. Ludwig AI suggests this is a correct and usable term.

Expression frequency: Common

Frequent in

Formal & Business

35%

News & Media

30%

Science

25%

Less common in

Wiki

10%

Encyclopedias

0%

Academia

0%

Ludwig's WRAP-UP

The phrase "a fixed asset" is a noun phrase commonly used in accounting and finance to denote tangible, long-term assets not easily converted to cash. Ludwig AI confirms its grammatical correctness. Primarily found in professional and business contexts, it serves to classify and categorize assets. When using the phrase, specifying the type of asset is beneficial, and care should be taken not to confuse it with current assets. Alternative phrases include "tangible asset" and "long-term asset". The most authoritative sources for its usage are Forbes, The New York Times and The Economist.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Tangible asset

Focuses on the physical and touchable nature of the asset.

Capital asset

Highlights the asset's role in generating capital or income.

Long-term asset

Emphasizes the extended period over which the asset will be used.

Non-current asset

Highlights that the asset will not be converted to cash within one accounting period.

Property, plant, and equipment (PP&E)

Specifically refers to physical assets used in a business's operations.

Durable good

Focuses on the asset's ability to withstand wear and tear over time.

Permanent asset

Emphasizes the lasting nature of the asset.

Infrastructure

Highlights assets that form the foundation of operations or systems.

Real property

Refers specifically to land and any structures attached to it.

Fixed capital

Implies the asset is used repeatedly in production and is not consumed.

FAQs

How is "a fixed asset" typically used in accounting?

"A fixed asset" is used to represent long-term tangible assets on a company's balance sheet, such as land, buildings, and equipment. These assets are subject to depreciation (except for land) over their useful lives.

What are some examples of "a fixed asset" in a business?

Common examples of "a fixed asset" include real estate, machinery, vehicles, furniture, and computer equipment. These are typically used for more than one accounting period.

What's the difference between "a fixed asset" and a current asset?

"A fixed asset" is a long-term asset that a company intends to use for more than one year, while a current asset is expected to be converted into cash or used up within one year. Examples of current assets include cash, accounts receivable, and inventory.

What can I say instead of "a fixed asset"?

Depending on the context, you could use "tangible asset", "capital asset", or "long-term asset" as alternatives.