Equipment is classified in the balance sheet as
A) a current asset.
B) property plant and equipment.
C) an intangible asset.
D) a long-term investment.

Question

Quizplus · Accepted Answer

Equipment is typically considered a property, plant, and equipment (PPE) asset in the balance sheet, which is a long-term asset category. This is because equipment is not intended for resale, but rather used in a company's operations to generate revenue. A current asset, such as inventory or accounts receivable, is a short-term asset that is expected to be converted into cash within one year or less. An intangible asset, such as a patent or trademark, is a non-physical asset that has no physical substance and can't be touched but still represents value to the company. A long-term investment is an asset that a company expects to hold for more than one year.

Equipment Is Classified in the Balance Sheet as