Equipment considered idle on a permanent basis should not be classified as plant and equipment.

Name: Equipment considered idle on a permanent basis should not be classified as plant and equipment.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

Plant and equipment refer to assets that are used in the production process or for the delivery of goods and services. If equipment is considered idle on a permanent basis, it is not contributing to the production process and therefore should not be classified as plant and equipment.

Equipment Considered Idle on a Permanent Basis Should Not Be