Fixed assets are long-term tangible pieces of property or equipment that a company owns and uses in its operations to generate income. These assets are not expected to be converted into cash within a year and include items such as buildings, machinery, and vehicles. They are essential for a business's operational capacity and are recorded on the balance sheet at their purchase price, minus any depreciation. The management of fixed assets is crucial for financial reporting and tax purposes. Companies must track their fixed assets to ensure accurate valuation and compliance with accounting standards. Proper maintenance and timely upgrades of these assets can significantly impact a company's efficiency and profitability.