Asked by Desirea Moore on Jul 11, 2024
Verified
Which of the following is not classified as plant assets?
A) Land.
B) Land improvements.
C) Buildings.
D) Machinery and equipment.
E) Patent.
Plant Assets
Enduring physical assets utilized in a business's operations, which are not expected to be sold.
Land Improvements
Enhancements made to a piece of land to increase its value or usability, such as landscaping, fencing, and adding utilities.
Patent
A legal document providing exclusive rights to inventors over their inventions, preventing others from making, using, or selling the invention without permission.
- Identify plant assets and differentiate them from intangible assets.
Verified Answer
GM
gandharv madaanJul 17, 2024
Final Answer :
E
Explanation :
Patents are not classified as plant assets. They are intangible assets that are amortized over their useful life. Plant assets are tangible assets such as land, buildings, and machinery that are used in the operation of the business.
Learning Objectives
- Identify plant assets and differentiate them from intangible assets.