A fixed asset is characterized by what?

A fixed asset is characterized by being used for extended periods without being quickly liquidated. This definition reflects the nature of fixed assets, which are long-term resources a company owns and uses in its operations to generate revenue. These assets include items such as buildings, machinery, and equipment, which typically have a useful life of more than one year and are not intended for immediate sale.

In contrast, being completely consumed within the short term relates to current assets rather than fixed assets. Fixed assets are expected to provide economic benefits over multiple accounting periods, emphasizing their long-term utility.

The low depreciation rate mentioned in another choice does not inherently define a fixed asset. While many fixed assets do depreciate over time, their classification does not strictly depend on the rate of depreciation.

Lastly, the characteristic of being highly liquid and easily transferred applies to current assets or marketable securities, not fixed assets, which are typically less liquid due to their long-term nature and the complexities involved in selling them. Therefore, the correct choice underscores the enduring and utilized aspect of fixed assets in a business context.