Asked by Cameron Conley on Jun 15, 2024
Verified
Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet.
Standby Equipment
This term describes equipment that is kept on site and is ready to be used as a backup or support in case the primary equipment fails or needs maintenance.
Breakdown
A detailed analysis or classification of something into its constituent parts.
- Gain insight into the parts and taxonomy of fixed assets.
Verified Answer
GG
Grace GreenJun 19, 2024
Final Answer :
True
Explanation :
Standby equipment held for use in the event of a breakdown of regular equipment is considered property, plant, and equipment and should be reported on the balance sheet as such.
Learning Objectives
- Gain insight into the parts and taxonomy of fixed assets.