Which of the following is considered a fixed asset?

A fixed asset refers to a long-term tangible piece of property or equipment that a business owns and uses in its operations to generate income. Fixed assets are not expected to be converted into cash within a year and are typically used over multiple accounting periods.

Land is a prime example of a fixed asset because it is a physical property that a business can hold for a long duration. Land does not depreciate over time, unlike many other fixed assets, such as buildings or machinery. Its value can potentially appreciate, providing long-term benefits to the business.

In contrast, inventory is considered a current asset since it is expected to be sold or used in the short term. Accounts receivable represents money owed to the business and is also a current asset, as it is expected to be converted into cash within a year. Cash, similarly, is the most liquid asset and is readily available to meet immediate financial obligations, placing it in the current asset category as well.