... acquired for the purpose of use in the business and is likely to be used by the business for a considerable period of time (more than 12 months). There are three categories of fixed assets: a) Tangible fixed assets (physical items such as land, buildings, machinery, and vehicles, the purchase of which is known as 'capital expenditure'). b) Intangible fixed assets (non-physical items, which are very difficult to place a value on, such as brand names, goodwill and patents). c) Financial fixed assets (investments that the business has, such as shares and debentures in other companies). Current Assets A current asset is either part of the operating cycle of the enterprise or is likely to be realised in the form of cash within 12 months. There are five categories of current assets: a) Cash in the bank. b) Cash on the premises ("petty cash"). c) Debtors (customers who have purchased goods on credit, and have not ...

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