Fixed Assets, Valuation and Depreciation

The fixed assets have the key importance in Accounting as the ixed assets come under the main head assets. Fixed assets are mostly tangible assets the examples are Cash, inventory (merchandise, supplies, raw materials), accounts receivable (customer payments owed), prepaid expenses (rent, insurance), short-term investments (stocks, bonds), land, buildings (offices, warehouses, factories), machinery and equipment (production, transportation), vehicles (cars, trucks, planes), furniture and fixtures (office furniture, store displays), computers and hardware, manufacturing equipment, construction in progress, oil and gas reserves, mineral deposits.

Key areas of discussion:

.Types of fixed assets

. Valuation of fixed assets

. Depreciation and methods of depreciation

. Nature of main heads

. Accounting entries of fixed assets

. Trade in Allowance for exchanged assets