This question was previously asked in
MPPEB Group 2 Subgroup 4 Labour Inspector Official Paper(Held On: 8th Jan 2017 Shift 1)
- Goodwill
- Small tools
- Vehicles
- Leasehold
Answer (Detailed Solution Below)
Option 2 : Small tools
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MPPEB Group 2 (Subgroup 4) Labour Inspector (Held On : 10 Jan 2017 Shift 2)
8.6 K Users
200 Questions 200 Marks 180 Mins
Detailed Solution
Download Solution PDFThe correct answer isSmall tools.
![[Solved] Which of the following is not a fixed asset ? (2)](https://i0.wp.com/cdn.testbook.com/resources/lms_creative_elements/key-point-image.png "[Solved] Which of the following is not a fixed asset ? (2)")
Key Points
Small toolsis not a fixed asset.
- It is pertinent to note that fixed assets are long-term assets.
- Small tools are something that company can easily replace any time.
- If company decides to sell it, it won't make a major difference to the revenue of the company.
![[Solved] Which of the following is not a fixed asset ? (3)](https://i0.wp.com/cdn.testbook.com/resources/lms_creative_elements/important-point-image.png "[Solved] Which of the following is not a fixed asset ? (3)")
Important Points
Goodwillis a fixed asset.
- Itis regarded as an intangible asset in accounting.
- Itadds value to the business over an extended period of time.
Leasehold is a fixed asset.
- Itappears in the accounting records of the lessee.
- The present value of all lease payments is considered to be the cost of the asset, which is recorded as a fixed asset.
Vehiclesare a fixed asset.
- Itis a depreciating asset.
- A vehicle can be a logistic vehicle that helps in carrying products from one place to another.
- A vehicle can be dedicated to carry company individuals to their meeting places.
![[Solved] Which of the following is not a fixed asset ? (4)](https://i0.wp.com/cdn.testbook.com/resources/lms_creative_elements/additional-information-image.png "[Solved] Which of the following is not a fixed asset ? (4)")
Additional Information
Fixed Assets
- Itrefer to long-term tangible assets that are used in the operations of a business. However, sometimes it can be intangible too.
- These assets are expected to last more than one year.
- Examples of fixed assets include land, machinery, vehicles, furniture, computer equipment, buildings, and other equipment.
- Theyare non-current assets on a company’s balance sheet.
- They're regarded as being illiquid in that they can't easily be converted into cash within a year.
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Last updated on Feb 5, 2024
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