What best describes fixed assets?

Fixed assets are best described as assets that have a useful life of more than one year and are not easily converted into cash. This definition aligns with the characteristics of fixed assets, which include property, buildings, machinery, and equipment used in operations. Such assets are essential for business operations and are usually recorded on the balance sheet at their original value, minus any accumulated depreciation.

The concept of utility over time is crucial, as these assets contribute to a company's long-term operations and cannot be liquidated quickly like cash or inventory. Understanding the nature of fixed assets is important for financial modeling, as they represent significant investments for businesses and ultimately affect financial analysis, asset management decisions, and valuation metrics.