Plant assets are used in everyday operations of the business and have useful lives that extend over more than one accounting period.

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Plant assets, also known as fixed assets, are expected to provide economic benefits to the company for more than one accounting period and are therefore not expensed in the period they are acquired. Instead, their cost is allocated over their useful lives through depreciation expense. Examples of plant assets include buildings, vehicles, equipment, and land.

Plant Assets Are Used in Everyday Operations of the Business