Question:
A Characteristic of a plant asset is that it:
A/ Lacks physical form
B/ is available for resale to costumers in the ordinary course of business
C/ is used in the prduction of income & business
D/ both A and B are correct
anyone know??
Answers:
C. Though the question is sort of a strange one. Plant assets are things like equipment used in businesses.
C.
A is describing intangible asset like Good Will
B is describing inventory.
What are property, plant and equipment?
Property plant and equipment (PPE) are tangible assets that an entity holds for its own use or for rental to others that the entity expects to use during more than one period [IAS16.6(R.05)] . PPE could be constructed by the reporting entity or purchased from other entities [IAS16.22(R.05)]. The consumption of PPE is reflected through a depreciation charge designed to reduce the asset to its residual value over its useful life [IAS16.50(R.05)].
So the answer is (c). If you wish to read more about PPE, click on the PwC link given below.
This site has some articles that answers some basic accounting questions.
http://mpoweryourself.com/accounting/acc...
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