Sprocket and Widget is a garment manufacturing company.Which of the following would be a fixed asset for Sprocket and Widget?

Question

Quizplus · Accepted Answer

Office furniture is a fixed asset because it is a long-term tangible piece of property that a company owns and uses in its operations to generate income. Fixed assets are not intended for resale but are used over time. U.S. Treasury bills, temporary workers, and trade credit do not qualify as fixed assets. Treasury bills are short-term investments, temporary workers are considered labor expenses, and trade credit is a form of short-term financing.

Sprocket and Widget Is a Garment Manufacturing Company