Which of the following best describes fixed assets?

Long-term tangible assets used in business operations is the best description of fixed assets. These are physical items that a company utilizes to produce goods, provide services, or manage operations, and they are not intended for quick sale. Examples of fixed assets include machinery, buildings, vehicles, and equipment.

The key characteristic of fixed assets is their long-term nature; they provide value over a period longer than one year, which distinguishes them from current assets that are expected to be liquidated or consumed within a year. This definition aligns with how businesses account for these items on the balance sheet, where fixed assets are recorded at their cost and depreciated over time to reflect their usage and aging. Hence, identifying fixed assets as long-term tangible items is critical for accurate financial reporting and asset management in a business context.