qualities are characteristics of fixed assets. For each quality, give an example of a fixed asset or if not a fixed asset, provide the account name for what it is described.
i.e., Quality – used to produce income. Answer: Yes, fixed asset, example- delivery van for a newspaper business
i.e., Quality – deposit received for purchase of services over next 2 years. Answer: Not a fixed asset, example – this is describing an Unearned Liability
b. Capable of repeated use in the normal operations of the business
c. Not held for sale in the normal course of business
d. Not used in the “operations” of the business
e. Useful life is greater than one year