Which of the following is NOT a characteristic of fixed assets?

• A. They include cash
• B. They are used for long-term operations
• C. They typically depreciate over time
• D. They are critical for generating revenue

Answer: (A)

The correct answer is that fixed assets do not include cash. Fixed assets, also known as tangible assets, are physical items that a company uses in its operations for more than a year, such as machinery, buildings, and vehicles. These assets are essential for carrying out business activities and generating revenue, which aligns with the characteristics outlined in the other options.

Cash, on the other hand, is classified as a current asset rather than a fixed asset. Current assets are expected to be converted into cash or used up within one year, emphasizing their short-term liquidity rather than long-term operational use.

Fixed assets are indeed utilized for long-term operations, typically depreciate over time to reflect their usage and wear, and play a crucial role in generating revenue for the company. Therefore, cash being part of current assets makes it the correct choice for not being a characteristic of fixed assets.