What term refers to assets such as land, buildings, and machinery?

The term that refers to assets such as land, buildings, and machinery is capital assets. Capital assets are long-term assets that are essential for a business's operations and growth. They are typically not intended for resale in the ordinary course of business and include physical items that have a substantial lifespan.

Land, buildings, and machinery fall under this category because they are utilized by the business to generate revenue over a long period. They are also significant investments that can influence a company's overall financial health and operational capabilities. Understanding capital assets is important for effective financial management, as they need to be accounted for differently than other types of assets.

Current assets, on the other hand, refer to assets that are expected to be converted into cash or used up within one year, such as inventory and accounts receivable. Liquid assets are assets that can quickly be converted to cash without significantly affecting their value, like bank accounts and marketable securities. Intangible assets include non-physical items such as patents, trademarks, and goodwill, which do not have a physical form like capital assets do. This distinction helps categorize business resources more effectively for financial analysis and reporting.