Land Purchased as a Building Site Is a Tangible Asset

question 39

True/False

Land purchased as a building site is a tangible asset called property,plant and equipment and is classified under the "Long-term Investments" section on the balance sheet.

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, or materials and supplies that are used in the production process to manufacture goods.

Customer List

A record or database containing information about a business's customers, including their contact information, purchase history, and preferences.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.

Amortization

The systematic reduction of the value of an intangible asset over its useful life to reflect its declining value or the allocation of the cost of an intangible asset over a period of time.