The Need to Determine Whether Property Is Real or Personal

question 36

Multiple Choice

The need to determine whether property is real or personal frequently arises. Which of the following would not be classified as real property?

• A) airspace over a condominium project
• B) newly planted fruit trees
• C) stock in a real estate corporation
• D) minerals in the ground before they are mined

---

Definitions:

Raw Materials

The basic materials and substances used in the initial stages of production to manufacture goods.

Standard Costs

Predicted costs associated with manufacturing or providing a service, used for budgetary control and performance analysis.

Cash Account

An account that tracks the flow of cash transactions, including all receipts and payments of cash.

Standard Cost Variances

Differences between the planned (standard) costs and the actual costs incurred.