Because plant and equipment are reported as long-term assets on the balance sheet,they have no impact on net income for the period until they are sold.

Name: Because plant and equipment are reported as long-term assets on the balance sheet,they have no impact on net income for the period until they are sold.
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Question

Quizplus · Accepted Answer

Plant and equipment impact net income through depreciation expense, which is recognized each period over the asset's useful life, reducing net income even before the asset is sold.

Because Plant and Equipment Are Reported as Long-Term Assets on the Balance