Which of the Following Is Not Properly Classified as Property

question 93

Multiple Choice

Which of the following is not properly classified as property, plant, and equipment?

• A) Building used as a factory.
• B) Land used in ordinary business operations.
• C) A truck held for resale by an automobile dealership.
• D) Land improvement, such as parking lots and fences.

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Definitions:

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.

In-The-Black

A financial term indicating that a business is making a profit, as opposed to being "in the red" which means it is incurring losses.

Quick Ratio

A liquidity metric that indicates a company's capacity to pay its current liabilities without needing to sell inventory, calculated as (cash + marketable securities + accounts receivable) / current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle.