Property, plant and equipment includes items that:

Question

Quizplus · Accepted Answer

Property, plant and equipment are long-term tangible assets that are used in the operations of a business and held for a period of time to generate revenue, rather than for resale or rental to others. Option A is incorrect because property, plant and equipment have physical substance. Option B is incorrect because items held for resale would typically be classified as inventory rather than property, plant and equipment. Option D is incorrect because assets expected to be used up within one year from date of purchase would typically be classified as a current asset rather than property, plant and equipment.

Property, Plant and Equipment Includes Items That