Home › CBSE Class 11 (Commerce) › Accountancy › Financial Statements of Sole Proprietorship › Fixed assets are held in the business for what p…
Fixed assets are held in the business for what purpose?
AResale to customers
BLong-term use, not resale
CQuick cash conversion
DPayment of creditors
Answer & Solution
Correct answer: B. Long-term use, not resale
Fixed assets such as land and furniture are held on a long-term basis and are not bought for resale.
Related questions
Why is the government interested in a business's profitability?A trial balance lists wages, salaries, rent and bad debts. Which is the only direct expensEntries not recorded in any special book go into which book?Where are all credit sales recorded?Which book records all cash and bank transactions?If total debits and credits in the trial balance agree, what is assumed?What is the basic objective of preparing financial statements?For managers, financial statements work like what?