Finance / July 19, 2018 / Isabella Mccray
A fixed asset is an item with a useful life greater than one reporting period, and which exceeds an entity's minimum capitalization limit. A fixed asset is not purchased with the intent of immediate resale, but rather for productive use within the entity. An inventory item cannot be considered a fixed asset, since it is purchased with the intent of either reselling it directly or incorporating it into a product that is then sold.
Common stocks are one form of a piece of ownership of a corporation. They are the type of stock that most people are thinking of when they use the term "stock." Since stocks are partial ownership of a corporation, they are also known as "shares." Common stocks allow stockholders to vote on corporate issues, such as the board of directors and accepting takeover bids. Most of the time, stockholders receive one vote per share. Stockholders also receive a copy of the corporation's annual report.
We Also Think You’ll Like