Which term refers to items that will be held for more than one year?

• A. Assets
• B. current assets
• C. fixed assets
• D. liabilities

Answer: (C)

Long-term use in business operations distinguishes different asset categories. Items held for more than one year are fixed assets because they are intended to support operations over several periods rather than be sold within the near term. Examples include land, buildings, machinery, and equipment, which appear on the balance sheet as non-current assets and are typically depreciated over their useful lives (except for land, which isn’t depreciated). This is different from current assets, which are expected to be converted to cash or used up within a year, and from liabilities, which are obligations the company owes.