Question

Assets classified as property, plant, and equipment must be both long-term in nature and possess physical substance. a)True b) False

Answer 1

Assets classified as property, plant, and equipment are indeed long-term in nature and must have a physical form, making the statement a) True.

Step-by-step explanation:

Assets classified as property, plant, and equipment must be both long-term in nature and possess physical substance. The statement is a) True.

These assets are also known as fixed assets and are used for the production or supply of goods and services, for rental to others, or for administrative purposes, and are expected to be used during more than one period.