Asked by Donna Pollock on Jun 19, 2024
Verified
Which of the following would not be classified as property,plant and equipment on a balance sheet?
A) Land held for investment.
B) Equipment used in the manufacturing process.
C) A building used as corporate headquarters.
D) A natural resource being mined.
Property, Plant and Equipment
Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming fiscal year.
Land Held
Real estate owned by a person or entity, typically recorded as an asset on the balance sheet.
Corporate Headquarters
The main office or central administration location of a company where key managerial functions are coordinated.
- Identify the differences between tangible and intangible assets, and grasp the principles guiding their recognition and assessment.
Verified Answer
TA
Tatiana AudainJun 22, 2024
Final Answer :
A
Explanation :
Land held for investment is not considered as property, plant, and equipment because it is not used in the operations of the business. Property, plant, and equipment are tangible assets used in the production or supply of goods and services or for administrative purposes.
Learning Objectives
- Identify the differences between tangible and intangible assets, and grasp the principles guiding their recognition and assessment.