What are assets that are bought as capital expenditure, such as machinery or vehicles, termed?

The term that best describes assets bought as capital expenditure, such as machinery or vehicles, is fixed assets. Fixed assets refer to long-term tangible pieces of property that a business owns and uses in its operations to generate income. These assets are not expected to be converted into cash within a year and typically have a useful life of more than one year. They are essential because they support production and service delivery, making them critical for the ongoing functioning of a business.

In contrast, capital items, although related to capital expenditure, are a broader term that may include various types of expenses that contribute to the production of goods and services but does not specifically categorize the assets as long-term. Current assets are those expected to be converted into cash within a year, such as inventory and accounts receivable, while investment assets typically refer to assets held for generating income or gains through appreciation rather than for operational purposes.