Property, plant, and equipment and intangible assets are:
A) Created by the normal operation of the business and include accounts receivable.
B) All assets except cash and cash equivalents.
C) Current and long-term assets used in the production of either goods or services.
D) Long-term revenue-producing assets.

Question

Quizplus · Accepted Answer

Property, plant, and equipment and intangible assets are classified as long-term assets because they are used over multiple accounting periods to generate revenue for a business. They are not created by normal operations like accounts receivable (eliminating A), they are not the only assets except cash and cash equivalents (eliminating B), and they are specifically long-term rather than current assets (eliminating C).

Property, Plant, and Equipment and Intangible Assets Are