Fixed assets that provide the basis for a firm's earning and value are often called ________.
A) tangible assets
B) noncurrent assets
C) earning assets
D) book assets

Question

Quizplus · Accepted Answer

Earning assets are those assets that generate revenue and profits for a firm, which in turn form the basis for the firm's earnings and value. Fixed assets like machinery, buildings, and equipment are typical examples of earning assets because they are used in the operations of a business to generate income.

Fixed Assets That Provide the Basis for a Firm's Earning