Fixed assets sometimes also known as property or wealth is a term which is used to represent assets which cannot be immediately converted or used as cash.

It can be described as something akin to current assets like bank accounts which are known as liquid assets. Therefore only tangible assets can be referred as fixed assets.

Fixed assets can be defined as an asset which can be used for trade but cannot be redeemed as cash in the near future or financial year.

Examples of Fixed Asset includes machinery, vehicles, leasehold improvements, manufacturing equipment,Land, buildings, equipment, real estate, and furniture.

Fixed assets are usually not used to carry out trade nor is it consumed or is  sold in the normal fashion as other consumables. While accounting the fixed assets are valued but it may not necessarily be immovable. Any asset which can be utilized for a period of more than a year is also designated as Fixed assets. While assigning a value for Fixed assets the price is decided as purchased price minus the depreciation amount.

Fixed assets play a significant role in accounting as well as in our lives.

They are generally known as the non-current assets and include plant and equipments, household property, land and building etc that are non-convertible into cash. You can compare fixed assets with current assets like cash or bank accounts that are of liquid nature; whereas, in most cases, only tangible assets are categorised in the form of fixed assets.

Capital management companies refer to those companies that assist in the management of current or short-term assets and short-term liabilities.

"Capital is the lifeblood of every business to flourish” is an often cited adage amongst financial managers. Short-term assets comprises of inventories, loans and advances, debtors, investments and cash and bank balances. Short-term liabilities on the other hand consists creditors, trade advances, borrowings and provisions. However, capital management companies majorly emphasize on short-term assets, because short-term liabilities take place in the context of short-term assets. It is important here to note the fact that capital management companies minimize risk by prudent working capital management.