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What are the two criteria for assets to be classified as Property, Plant, and Equipment under GAAP?

User Zerlina
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Final answer:

Assets must be produced and usable in the production of goods and services to be classified as Property, Plant, and Equipment under GAAP.

Step-by-step explanation:

The two criteria for assets to be classified as Property, Plant, and Equipment under GAAP are:

The resource must have been produced.

The resource can be used to produce other goods and services.

These criteria are used to determine if an asset should be classified as part of a company's long-term tangible assets, such as buildings, land, machinery, and vehicles. These assets are not meant for sale but are used in the production process.

User Mikalaj Murziankou
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