AbhishekBatabyalHelpful In: 1. Financial Accounting > Miscellaneous What account is land? What account is land? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent GautamSaxena Curious . 2022-08-19T10:18:54+00:00Added an answer on August 19, 2022 at 10:18 am This answer was edited. The land is a fixed asset and is treated as a long-term asset account. Explanation The land is a fixed asset which is also referred to as a long-term asset. The fixed assets are those assets that are not expected to be cashed, consumed, last, sold, or written off within one accounting year and are purchased for long-term use. The fixed assets are also called non-current assets and the reason behind it is that current assets are easily converted into cash within one year and they are not. Fixed assets are planned by the company to be used for the long term in order to generate income. Example- Land, building, furniture, plants & equipment, etc. Why is land an asset? Although the land is not depreciated, it is still considered to be an asset because just like other assets the business spends its own money to acquire it. It can also be used by the business for different operations and it doesn’t create any liability for the business. Instead, reselling the land after a few years can help the company earn a huge margin of profit. Land in the balance sheet On the asset side of the balance sheet, the land is stated under the heading long-term assets. Balance Sheet (for the year…) Therefore, the land is a fixed asset and is treated as a long-term asset account. 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What are some examples of deferred revenue expenses? Are brands intangible assets? What comes in debit side of Realisation account? What is recorded in the Realisation account? What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance?