Investment Language 101 Series: TERM OF THE DAY: -- What Is: ' Fixed Assets ' | E.30 | Trading Candle Cheat Sheet Incl. Each Episode.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Fixed Assets '?
--
A fixed asset is a long-term tangible piece of property that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year.
Fixed assets are known as property, plant, and equipment (PP&E). They are also referred to as capital assets.
--
Breaking Down...
' Fixed Assets ':
--
A company's balance sheet statement consists of its assets, liabilities, and shareholders' equity.
Assets are divided into current assets and noncurrent assets, the difference for which lies in their useful lives. Current assets are typically liquid assets which can be converted into cash in less than a year. Noncurrent assets refers to assets and property owned by a business which are not easily converted to cash. The different categories of noncurrent assets include fixed assets, intangible assets, long term investments, and deferred charges.
A fixed asset is bought for production or supply of goods or services, for rental to third parties, or for use in the organization. The term 'fixed' translates to the fact that these assets will not be used up or sold within the accounting year.
-- A fixed asset typically has a physical form and is reported on the balance sheet as property, plant, and equipment (PP&E).
When a company acquires or disposes of a fixed asset, this is recorded on the cash flow statement under the cash flow from investing activities. The purchase of fixed assets represents a cash outflow to the company, while a sale is a cash inflow. If the value of the asset falls below its net book value, the asset is subject to an impairment write-down. This means that its recorded value on the balance sheet is adjusted downward to reflect that its overvalued compared to the market value.
When a fixed asset has reached the end of its useful life, it is usually disposed of by selling it for a salvage value, which is the estimated value of the asset if it was broken down and sold in parts. In some cases, the asset may become obsolete and may no longer have a market for it, and will, therefore, be disposed of without receiving any payment in return. Either way, the fixed asset is written off the balance sheet as it is no longer in use by the company.
Some accountants categorize intangible long-term assets, such as trademarks and patents, as fixed assets, and more specifically refer to them as fixed intangible assets.
-- Examples of Fixed Assets:
Fixed assets can include buildings, computer equipment, software, furniture, land, machinery and vehicles. For example, if a company sells produce, its delivery trucks are fixed assets. If a business creates a company parking lot, the parking lot is a fixed asset. Note that a fixed asset does not necessarily have to be "fixed" in all sense of the word. Some of these types of assets can be moved from one location to another, such as furniture and computer equipment.
-- Depreciation of Fixed Assets:
Fixed assets lose value as they age. Because they provide long-term income, these assets are expensed differently than other items. Tangible assets are subject to periodic depreciation, as intangible assets are subject to amortization. A certain amount of the asset's costs is expensed annually. The asset's value decreases along with its depreciation amount on the company's balance sheet. The corporation can then match the asset's cost with its long-term value.
How a business depreciates an asset can cause its book value, or amount paid for the asset, to differ from the current market value at which the asset could sell. Unless it contains natural resources, land may not be depreciated, because it cannot be depleted.
-- Importance of Fixed Assets:
Information about a corporation's assets helps create accurate financial reporting, business valuation, and thorough financial analysis. Investors and creditors use these reports to determine a company's financial health and to decide whether to buy shares in or lend money to the business. Because a company may use a range of accepted methods for recording, depreciating, and disposing of its assets, analysts need to study the notes on the corporation's financial statements to find out how the numbers were determined.
Fixed assets are particularly important to capital intensive industries, such as manufacturing, that require large investments in PP&E. When a business is reporting persistently negative net cash flows for the purchase of fixed assets, this could be a strong indicator that the firm is in growth mode.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
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Some of my recent blogs:
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Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
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DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Fixed Assets '?
--
A fixed asset is a long-term tangible piece of property that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year.
Fixed assets are known as property, plant, and equipment (PP&E). They are also referred to as capital assets.
--
Breaking Down...
' Fixed Assets ':
--
A company's balance sheet statement consists of its assets, liabilities, and shareholders' equity.
Assets are divided into current assets and noncurrent assets, the difference for which lies in their useful lives. Current assets are typically liquid assets which can be converted into cash in less than a year. Noncurrent assets refers to assets and property owned by a business which are not easily converted to cash. The different categories of noncurrent assets include fixed assets, intangible assets, long term investments, and deferred charges.
A fixed asset is bought for production or supply of goods or services, for rental to third parties, or for use in the organization. The term 'fixed' translates to the fact that these assets will not be used up or sold within the accounting year.
-- A fixed asset typically has a physical form and is reported on the balance sheet as property, plant, and equipment (PP&E).
When a company acquires or disposes of a fixed asset, this is recorded on the cash flow statement under the cash flow from investing activities. The purchase of fixed assets represents a cash outflow to the company, while a sale is a cash inflow. If the value of the asset falls below its net book value, the asset is subject to an impairment write-down. This means that its recorded value on the balance sheet is adjusted downward to reflect that its overvalued compared to the market value.
When a fixed asset has reached the end of its useful life, it is usually disposed of by selling it for a salvage value, which is the estimated value of the asset if it was broken down and sold in parts. In some cases, the asset may become obsolete and may no longer have a market for it, and will, therefore, be disposed of without receiving any payment in return. Either way, the fixed asset is written off the balance sheet as it is no longer in use by the company.
Some accountants categorize intangible long-term assets, such as trademarks and patents, as fixed assets, and more specifically refer to them as fixed intangible assets.
-- Examples of Fixed Assets:
Fixed assets can include buildings, computer equipment, software, furniture, land, machinery and vehicles. For example, if a company sells produce, its delivery trucks are fixed assets. If a business creates a company parking lot, the parking lot is a fixed asset. Note that a fixed asset does not necessarily have to be "fixed" in all sense of the word. Some of these types of assets can be moved from one location to another, such as furniture and computer equipment.
-- Depreciation of Fixed Assets:
Fixed assets lose value as they age. Because they provide long-term income, these assets are expensed differently than other items. Tangible assets are subject to periodic depreciation, as intangible assets are subject to amortization. A certain amount of the asset's costs is expensed annually. The asset's value decreases along with its depreciation amount on the company's balance sheet. The corporation can then match the asset's cost with its long-term value.
How a business depreciates an asset can cause its book value, or amount paid for the asset, to differ from the current market value at which the asset could sell. Unless it contains natural resources, land may not be depreciated, because it cannot be depleted.
-- Importance of Fixed Assets:
Information about a corporation's assets helps create accurate financial reporting, business valuation, and thorough financial analysis. Investors and creditors use these reports to determine a company's financial health and to decide whether to buy shares in or lend money to the business. Because a company may use a range of accepted methods for recording, depreciating, and disposing of its assets, analysts need to study the notes on the corporation's financial statements to find out how the numbers were determined.
Fixed assets are particularly important to capital intensive industries, such as manufacturing, that require large investments in PP&E. When a business is reporting persistently negative net cash flows for the purchase of fixed assets, this could be a strong indicator that the firm is in growth mode.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
You actually explained it better then the Financial accounting classbook I had. Well done !
Good lecture, would certainly meet the needs of new users. Thank you @barrydutton
thank you, have gained something new and salute the originality of this story may be useful, so that life is more useful and useful for others
@barrydutton