Which of the following is a correct statement about long-term assets?
A) Accumulated depreciation increases the cost of property, plant, and equipment on the balance sheet.
B) Intangibles are long-term assets with no physical form.
C) Long-term investments can never be sold by the company.
D) Other long-term assets include accumulated depreciation.

Question

Quizplus · Accepted Answer

Intangibles are long-term assets that have no physical form, such as patents and copyrights. Option A is incorrect because accumulated depreciation decreases the cost of property, plant, and equipment on the balance sheet. Option C is incorrect because long-term investments can be sold by the company, although they are not expected to be sold within a year. Option D is incorrect because accumulated depreciation is a contra asset account and is subtracted from the cost of long-term assets on the balance sheet.

Which of the Following Is a Correct Statement About Long-Term