Asked by Steph Dutting on Jul 11, 2024
Verified
Plant assets are defined as:
A) Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business.
B) Current assets.
C) Held for sale.
D) Intangible assets used in the operations of a business that have a useful life of more than one accounting period.
E) Tangible assets used in the operation of business that have a useful life of less than one accounting period.
Plant Assets
Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as machinery, buildings, and land.
Tangible Assets
Physical assets that have a form, such as machinery, buildings, and inventory, which can be touched or seen.
Accounting Period
A period of time, such as a month, quarter, or year, over which financial statements are prepared to understand a business's financial position and performance.
- Recognize and define plant assets, including their characteristics and role in business operations.
Verified Answer
SM
sharona mataeleJul 12, 2024
Final Answer :
A
Explanation :
Plant assets are tangible assets such as equipment, buildings, land, and vehicles that are used in the operation of a business and have a useful life of more than one accounting period. They are considered long-term assets and are recorded on the balance sheet at their historical cost less depreciation. Current assets, held for sale, and intangible assets do not fit the definition of plant assets. Tangible assets with a useful life of less than one accounting period would be considered supplies, not plant assets.
Learning Objectives
- Recognize and define plant assets, including their characteristics and role in business operations.