Fixed assets are long-term assets that a company owns and uses in its business operations, such as property, plant, and equipment (PP&E), buildings, vehicles, and machinery. Fixed assets are expected to provide economic benefits to the company over a period of several years and are therefore typically recorded on a company's balance sheet as an asset, rather than as an expense.

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Fixed assets are an important component of a company's financial position and can have a significant impact on its profitability and cash flow. Because fixed assets are generally expensive to acquire and maintain, they require careful management to ensure that they are being used effectively and generating the expected economic benefits.

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One important aspect of fixed asset management is depreciation. As fixed assets are used in a company's operations, they gradually lose value over time due to wear and tear, obsolescence, or other factors. Depreciation is an accounting method used to allocate the cost of a fixed asset over its useful life, and it is an important tool for accurately reflecting the value of fixed assets in a company's financial statements.

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Fixed assets are an essential part of a company's operations and financial position. By carefully managing their fixed assets and implementing appropriate depreciation policies, companies can ensure that they are generating the expected economic benefits from their investments in property, plant, and equipment. Effective fixed asset management can also help companies to improve their financial statements, reduce their taxable income, and make more informed decisions about their capital expenditures and overall business strategy.

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