Which of the Following Is NOT a Characteristic of a Plant

question 163

Multiple Choice

Which of the following is NOT a characteristic of a plant asset?

• A) The asset is used in the production of income for the business.
• B) The asset is available for sale to customers in the ordinary course of business.
• C) The asset has physical form.
• D) The asset has future usefulness and value.

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Definitions:

Intangible Assets

Assets that cannot be physically touched or held, such as patents, trademarks, and goodwill.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was placed in service, reflecting its loss of value over time.

Property Plant

Property, Plant, and Equipment (PP&E) are fixed assets including buildings, machinery, and equipment that are owned and used by a company for operations and not for immediate sale.

Corporate Office

The central or main office of a company where key administrative and executive activities occur.