Which of the following is an example of a fixed asset?

A fixed asset is a long-term tangible piece of property or equipment that a business owns and uses in its operations to generate income. Fixed assets are not intended for sale in the regular course of business and are typically subject to depreciation over time, reflecting their use and wear.

Machinery is a prime example of a fixed asset because it is a physical item used in the production process or service delivery. It is expected to provide economic benefits over multiple years, thereby contributing to the company's operational capabilities and revenue generation.

In contrast, cash is classified as a current asset, as it is the most liquid form of asset readily available for operational needs. Accounts receivable represents money owed to the business from customers for sales made on credit and is also categorized as a current asset. Prepaid expenses refer to payments made in advance for goods or services to be received in the future, and they, too, fall under current assets until they are recognized in the period they are utilized. Thus, machinery stands out as the only item in the list that meets the criteria of a fixed asset.