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Accounting norms require a company to record office furniture as a short-term or long-term asset, depending on the length of time the furniture serves in corporate operations. A short-term asset is a resource that a company can convert into cash within 12 months.
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An office chair is either an expense or a fixed asset. How you classify the office chair in your journal entry depends on whether the chair cost is over or under your company’s capitalization limit.
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Furniture, fixtures, and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building.. FF&E are movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building or utilities.
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