Plant and Equipment includes which of the following?

Question

Quizplus · Accepted Answer

Plant and Equipment accounts on the balance sheet include tangible assets used in a company's operations that have a useful life of more than one year. Accumulated Depreciation on Equipment is directly related to these assets, representing the wear and tear on the equipment over time. It is a contra asset account that reduces the gross amount of the assets to reflect their reduced value due to depreciation. Mortgage Payable and Supplies do not fall under Plant and Equipment; Mortgage Payable is a liability, and Supplies are current assets, typically expensed when used or within a year.

Plant and Equipment Includes Which of the Following