Which of the following would be classified as a fixed asset?

The classification of a fixed asset refers to a long-term tangible piece of property that a firm owns and uses in its operations to generate income. Office machinery fits this definition as it is a physical asset that is used over a period of time, typically more than one year, for the purpose of conducting business operations. These assets are not intended for resale but are rather essential to the daily functioning of a business.

In contrast, inventory is considered a current asset because it is intended to be sold within a year; accounts receivable represent amounts owed by customers and are also classified as current assets; cash, while a critical component of a company’s operations, is classified as a current asset because it is readily available for use within the business. Thus, office machinery appropriately fits the criteria for fixed assets due to its role in production and business operations over an extended period.