Fixed asset

A fixed asset is something that a business owns and uses to make money for a long time. Imagine you have a toy car that you really like playing with. You use it a lot, and you think it will last a long time. That toy car would be like a fixed asset for you.

Now, think of a business that has a lot of big things they use to make money, like a building or machines. Those things are also fixed assets. Just like your toy car, the business uses these things for a long time to help make money.

However, the difference between a toy car and a fixed asset for a business is that a business has to keep track of its fixed assets. They have to make sure they know how much they paid for them, how long they have had them, and how much they are worth. This helps the business figure out if they are making money or not.

So, remember, a fixed asset is something a business owns and uses for a long time to make money, and they have to keep track of it to know how well their business is doing.