Which of the following best describes "fixed assets"?

The term "fixed assets" refers specifically to long-term tangible assets that a business utilizes in its operations to generate revenue. These assets are not easily converted into cash and are expected to provide value to the business over an extended period, typically longer than one year. Examples of fixed assets include buildings, machinery, vehicles, and equipment, all of which play a crucial role in the functioning of a business.

Fixed assets are distinguished from other types of assets due to their long-term nature. Unlike current assets, which include cash and other items that can quickly be turned into cash, fixed assets are meant to support the business's operations and growth over time. They are also subject to depreciation, reflecting their use and wear over the years, but this does not change their classification as fixed assets.

The other options do not accurately capture the essence of fixed assets. For instance, the concept of assets that can be quickly converted to cash aligns more with current assets, whereas liabilities refer to financial obligations of the business, and assets that lose value over time may carry misleading implications about the nature of fixed assets. Therefore, the best description of fixed assets is indeed that they are long-term tangible assets used in business operations.