Question

When determining whether to record an asset as a fixed asset, what two criteria must be met?

Must be an investment and must be long lived.
Must be long lived and must use the asset in a productive manner.
Must be short lived and must be a tangible asset.
Must be a tangible asset and must be an investment.

Answer 1

Answer: To classify an asset as fixed it must be met: "Must be long lived and must use the asset in a productive manner."

Explanation: Fixed assets: those assets and durable rights, which have been obtained in order to be exploited by the company. These are property, materials, equipment, tools and utensils that are not going to be marketed, that is, they are not going to become liquid at least during the first year.