Which item would be classified as a fixed asset on a balance sheet?

• A. Inventory
• B. Buildings
• C. Goodwill
• D. Cash at bank

Answer: (B)

Fixed assets are long-term tangible resources a business uses in its operations and expects to keep for more than one year. They are not held for sale and are usually depreciated over their useful lives. A building fits this description because it is a physical structure used in the business over many years and its cost is allocated to expenses over time through depreciation. The other options are not fixed assets: inventory is a current asset held for sale in the ordinary course of business; cash at bank is a current asset representing liquidity; goodwill is an intangible non-current asset representing value from factors like brand and customer relationships, not a tangible asset used in operations.