Asked by Parker Murdie on Jun 18, 2024
Verified
Office equipment is classified on the statement of financial position as
A) a current asset.
B) property, plant, and equipment.
C) shareholders' equity.
D) a long-term investment.
Office Equipment
Office equipment consists of tangible property like desks, computers, and copiers that are used in an office setting for operations and administrative functions.
Financial Position
A snapshot of what a company owns (assets) and owes (liabilities) at a particular point in time, showing its net worth.
Property
Assets or possessions owned by an individual or company, comprising both tangible items, like buildings and land, and intangible items like patents or copyrights.
- Illustrate the distinction between the categorization of assets and liabilities as either current or non-current.
- Perceive the contrast between physical assets and intangible assets and their illustration in financial accounts.
Verified Answer
RM
Robin MedinaJun 24, 2024
Final Answer :
B
Explanation :
Office equipment is classified as property, plant, and equipment on the statement of financial position because it is a tangible asset used in the operations of a business over several years, not intended for resale in the normal course of business.
Learning Objectives
- Illustrate the distinction between the categorization of assets and liabilities as either current or non-current.
- Perceive the contrast between physical assets and intangible assets and their illustration in financial accounts.