Asked by Andrew Cameron on Jul 27, 2024
Verified
One characteristic of plant assets is that they are:
A) Current assets.
B) Used in operations.
C) Natural resources.
D) Long-term investments.
E) Intangible.
Plant Assets
Long-term tangible assets used in the production of goods or services, typically including buildings, machinery, and equipment.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.
Intangible
Assets that lack physical substance but are identifiable and provide economic benefits, such as patents and trademarks.
- Comprehend and explain the essence and duties of plant assets, highlighting their qualities and importance in commercial undertakings.
Verified Answer
KE
Katie EnglishAug 03, 2024
Final Answer :
B
Explanation :
Plant assets are used in operations to generate revenue for the company. They are typically long-term in nature and have a useful life of more than one accounting period. Current assets are assets that can be easily converted to cash within one year, while natural resources are assets that are extracted from the earth like oil or minerals. Long-term investments are assets that a company holds for a significant period of time but does not use in its normal operations. Intangible assets are non-physical assets such as patents, trademarks, and goodwill.
Learning Objectives
- Comprehend and explain the essence and duties of plant assets, highlighting their qualities and importance in commercial undertakings.