Fixed assets are best described as?

Fixed assets are best described as long-term tangible assets used in operations because they represent resources that a business utilizes over an extended period to generate revenue. These assets typically include property, plant, and equipment, such as buildings, machinery, and vehicles. Unlike current assets, which are expected to be converted into cash or used up within a year, fixed assets provide ongoing value and productivity to the business as they are used in the daily operations.

In contrast, short-term investments refer to financial assets intended to be converted into cash within a year, which would not fit the definition of fixed assets. Cash reserves are simply the liquid funds available to a company for immediate use, rather than tangible resources used for long-term operations. Lastly, inventory represents goods that are held for sale in the normal course of business, which again does not align with the concept of fixed assets. Thus, the correct characterization of fixed assets emphasizes their role as long-term investments in the operational capacity of a business.