Which type of assets are long-term tangible assets used in operations?

The correct answer is fixed assets. Fixed assets are long-term tangible assets that a company uses in its operational processes to produce goods or provide services. These assets are not intended for sale in the ordinary course of business and typically include items such as buildings, machinery, vehicles, and equipment. Their long-term nature and physical presence are what differentiate them from other asset categories, such as current assets, which are intended to be converted to cash or used within one year.

Understanding the classification of fixed assets is crucial for financial reporting and performance measurement. They are recorded on the balance sheet at their original purchase price and depreciated over time, representing their loss in value as they are used in operations. This depreciation reflects the allocation of the asset's cost over its useful life, which is an important concept in accounting and financial analysis. In contrast, current assets would include cash and other assets expected to be converted into cash within one year, while other assets may refer to various miscellaneous resources not categorized elsewhere, and liabilities are obligations the business must settle in the future.