The account can represent either a single
asset or a group of related assets. When you create the account, follow these guidelines:
Asset
Your company assets are the things that your company owns.
QuickBooks distinguishes between two types of assets:
Current assets. These are the assets you are likely to convert to cash within one year. They include the cash you have on hand, the money in your checking and savings accounts, and the money your customers owe your business.
Fixed assets. These are the assets you do not expect to convert to cash during one year of normal operations. A fixed asset is usually something that is necessary for the operation of your business—like a truck, cash register, or computer.
Make the account type “Fixed Asset.”
Give each account a name that indicates which asset(s) it is tracking. Examples: Truck, Office Furniture, Computer.