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Long-Term Assets

   Also found in: Legal, Wikipedia 0.01 sec.
Long-term assets
Value of property, equipment, and other capital assets minus the depreciation. This is an entry in the bookkeeping records of a company. It is usually established on a "cost" basis, and thus does not necessarily reflect the market value of the assets.

Fixed Asset
An asset with a long-term useful life that a company uses to make its products or provide its services. Strictly speaking, a fixed asset is any asset that the company does not expect to sell for at least a year, but the term often refers to assets a company expects to have indefinitely. Common examples of fixed assets are real estate and factories, which a company holds for long periods of time.


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Without a developed debt market, many companies reverted to easily accessible short-term loans to finance their growth--including financing investments in long-term assets.
The rating agency observes that liquidity management remains a major challenge for the UAE banking sector as banks use short-term deposits and interbank lending to finance long-term assets.
Companies that funded long-term assets with short-term liabilities may face liquidity problems, such as distressed sales of assets, when creditors won't roll over the short-term loans.
 
 
 
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