Which type of assets includes things like buildings and machinery?

Fixed assets are long-term tangible assets that are typically used in the production of goods and services. This category includes things like buildings, machinery, equipment, vehicles, and furniture. These assets are crucial for a company’s operations, as they support the business over multiple years, rather than being consumed or converted into cash within a year.

In financial reporting, fixed assets are recorded on the balance sheet and are subject to depreciation over time to reflect their decreasing value as they are used. This contrasts with current assets, which are expected to be converted into cash or used up within one year, such as cash, inventory, and accounts receivable. Other assets may include a diverse range of items that don't fit neatly into other classifications, and intangible assets consist of non-physical items like patents, trademarks, or goodwill. Therefore, the classification of buildings and machinery as fixed assets is appropriate due to their physical nature and long-term usage in business operations.