A Characteristic of a Plant Asset Is That It Is

question 108

Multiple Choice

A characteristic of a plant asset is that it is

• A) intangible.
• B) used in the operations of a business.
• C) held for sale in the ordinary course of the business.
• D) not currently used in the business but held for future use.

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Definitions:

Cash Payments

Transactions in which money is paid out by a business, often for expenses, debts, or purchases.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to reveal net cash from operating activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.

Operating Activities

Transactions and events that relate to the primary operations of the company, including revenue and expense activities.