Definition:

Fixed assets are property or resources that a company can use to make money in the long run, but does not intend to sell to customers. In contrast with liquid assets, fixed assets are less accessible and cannot be as readily converted into cash. Examples are computers, machinery, vehicles, property, and long financial term investments.

Example:

You own a truck that is currently worth $5,000, and a warehouse valued at $100,000.
These Fixed assets would be recorded on the Balance Sheet with a total of $105,000.

Often fixed assets will decline in value over time. For example, a depreciation charge reduces the value of the truck each month, with the same amount also being charged to the income statement (in the D&A section) to reflect this cost of doing business.

Why it matters:

Fixed assets are typically owned by a company to help it operate its business.

In some industries they may represent a large part of the value of the business (e.g. an airline or hotel chain that owned its planes or properties).