Which of the following best describes fixed assets?

Fixed assets are best described as items that provide long-term value to an organization. This includes tangible and intangible assets that a business uses in its operations to generate income and is not intended for sale in the normal course of business. Examples of fixed assets include property, buildings, machinery, and equipment, which typically have a useful life extending beyond a single accounting period.

This distinction is important because it highlights the role of fixed assets in a company's long-term strategy, as these items contribute to the production of goods or services over several years. In accounting, fixed assets are usually subject to depreciation, reflecting their gradual reduction in value over time as they are used.

In contrast, the other options pertain to different classifications of assets. Items intended for sale refers to inventory, cash equivalent items are short-term assets that can be quickly converted into cash, and items with a variable life span do not give a clear indication of consistent long-term utility which fixed assets typically represent. Thus, the definition of fixed assets relates directly to their long-term value within an organization.