Which type of asset includes construction equipment and office equipment?

The type of asset that includes construction equipment and office equipment is classified as fixed assets. Fixed assets are long-term tangible pieces of property that a company owns and utilizes in its operations to generate income. These assets are not expected to be converted into cash within a year; rather, they are used consistently over time to support the operational activities of the business.

Construction equipment falls into this category as it is typically used over many years for various projects, contributing to the generation of revenue. Similarly, office equipment, such as computers and furniture, is also classified as a fixed asset because it is essential for the daily functioning of the business and is anticipated to provide utility over several accounting periods.

Current assets, on the other hand, are items that can be easily converted into cash or will be used up within a year, like inventory or accounts receivable. Liquid assets also refer to cash or assets that can be quickly converted to cash without a significant loss in value. Indirect expenses refer to costs that are not directly tied to manufacturing a product or service and instead support the overall operations of the business, but they are not classified as assets.

Thus, fixed assets appropriately categorize construction and office equipment due to their long-term nature and role in supporting business operations.