Which of the Following Statements Is True of Fixtures

question 1

Multiple Choice

Which of the following statements is true of fixtures?

• A) A person who attaches fixtures to real property is always entitled to compensation from the owner.
• B) Fixtures associated with a real property belong to the owner of the real property.
• C) A conveyance of real property does not transfer the fixtures associated with that property.
• D) Fixtures cannot be categorized as property if they are not specifically mentioned as such in a conveyance.

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Definitions:

Property, Plant, Equipment

Tangible assets owned by a company used in operations and not intended for resale, such as buildings, machinery, and vehicles.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.