Fixed assets, also known as tangible assets or property, plant, and equipment (PP&E), are long-term assets with physical substance and economic value used in business operations to generate revenue. Fixed assets include land, buildings, machinery, equipment, vehicles, furniture, and other tangible resources. They are not intended for sale in the ordinary course of business and are expected to provide benefits over multiple accounting periods through use or consumption. Fixed assets are recorded on the balance sheet at historical cost less accumulated depreciation, reflecting their net book value or carrying amount. They undergo periodic depreciation to allocate their cost over their useful lives, reflecting the consumption of economic benefits and the decline in their value over time. Fixed assets play a critical role in supporting business activities, contributing to productivity, efficiency, and revenue generation.