The Useful Life of a Plant Asset Is

question 128

Multiple Choice

The useful life of a plant asset is:

• A)The length of time it is productively used in a company's operations.
• B)Never related to its physical life.
• C)Its productive life,but not to exceed one year.
• D)Determined by the FASB.
• E)Determined by law.

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Definitions:

Debt Worthy

A term indicating an individual or organization's capability and reliability in repaying borrowed money, often assessed by creditworthiness.

Expansion Capital

Refers to the funds provided to mature companies looking to expand operations, enter new markets, or acquire assets without changing control of the business.

Long-Term Borrowings

Loans or debt obligations with repayment schedules extending beyond one year, used to finance more permanent or significant investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.