Question

Andrew Lighting purchases a factory and all of the equipment, computers, and vehicles within it. Andrew begins production of lamps at the factory using the equipment and delivers them to clients using the vehicles. However, the company sells the computers because it has no use for them. Which of the items included in Andrew’s purchase is a fixed asset?

Answer 1

Answer: Factory

Vehicles

Equipment

Explanation:· A fixed asset is a long-term tangible asset a company owns and uses in its production activity to earn an income.

The computer isn't a fixed asset to Andrew because he doesn't use it in his production process.