What are long-term assets used in a business, such as land and machinery, called?

Long-term assets used in a business, such as land and machinery, are classified as fixed assets. Fixed assets are tangible items that a company uses in its operations to generate revenue and are not expected to be converted into cash within a year. These assets typically have a useful life of more than one year, and they are essential for the ongoing functioning and productivity of the business.

Unlike current assets, which are expected to be liquidated or used up within one year (like cash or inventory), fixed assets are long-term investments intended to support business activities over a longer duration. Additionally, while liquid assets refer to cash or other assets that can quickly be converted to cash, and intangible assets include non-physical assets such as patents or trademarks, fixed assets specifically encompass physical resources like land and machinery that a business uses to operate effectively in the long run.