What is a key characteristic of fixed assets in terms of their lifespan?

Fixed assets, also known as long-term assets, are defined by their durability and long-term utility for a business. A key characteristic of fixed assets is that they are typically measured in years due to their expected lifespan within the business. These assets are used over an extended period, usually exceeding one year, and can include items such as buildings, machinery, equipment, and vehicles.

The categorization of fixed assets as lasting for years rather than days or months reflects their essential function in generating revenue for the business over time. This enduring nature is why fixed assets are subject to depreciation, which accounts for the gradual decrease in their value as they age and are utilized.

In contrast to fixed assets, other types of assets may have shorter lifespans, but fixed assets are specifically distinguished by their longevity and the role they play in a company's operations. This ensures businesses can plan for their long-term investment and maintain their operational capabilities effectively.