Which of the following is an example of a fixed asset?

A fixed asset, also known as a tangible asset, refers to long-term resources owned by a business that are not expected to be converted into cash within a year. These assets are used in the operations of the business to produce goods and services and typically have a useful life of more than one year.

Buildings and machinery exemplify fixed assets as they are physical items that a company uses over an extended period. Buildings serve as a place for operations, and machinery is essential for manufacturing processes or service delivery. The value of these assets is recorded on the balance sheet and is subject to depreciation over time, reflecting their wear and tear.

In contrast, cash in hand and investments in stocks represent more liquid assets that can quickly be converted to cash, thus they do not fit the definition of fixed assets. Inventory, while important for business operations, is categorized as a current asset since it is expected to be sold within one year.