What is the primary characteristic of fixed assets?

Fixed assets are characterized primarily by their permanence and the fact that they are utilized over multiple accounting periods. This includes items such as buildings, machinery, and equipment, which a business uses in its operations rather than for immediate resale. These assets are essential for production and service delivery, and they typically require significant investment. They are not expected to be converted into cash quickly, as their purpose is to provide long-term utility and support the ongoing activities of the business.

The notion that fixed assets are usually permanent underscores their role in providing value over a longer timeframe, as they are systematically depreciated over their useful lives to account for wear and tear. This characteristic differentiates them from current assets, which are meant for short-term use and liquidity.

In contrast, the other options do not accurately describe fixed assets: they are not easily convertible into cash, they hold significant value (often increasing over time due to factors like appreciation), and they are not typically acquired for resale but rather for operational needs.