130k views
5 votes
Prepare the property, plant, and equipment section of a classified balance sheet given the following normal account balances on december 31?

User NoSkill
by
8.6k points

1 Answer

4 votes

Final answer:

The property, plant, and equipment section of a classified balance sheet includes tangible assets that are used in the operations of a business. Examples include buildings, machinery, vehicles, and furniture.

Step-by-step explanation:

Property, Plant, and Equipment Section of a Classified Balance Sheet

The property, plant, and equipment section of a classified balance sheet includes tangible assets that are used in the operations of a business. These assets are categorized as property, plant, and equipment because they have a physical substance and are not intended for resale. Examples of such assets include buildings, machinery, vehicles, and furniture.

To prepare the property, plant, and equipment section of a classified balance sheet, you need to list each individual asset and its corresponding value. This allows stakeholders to understand the value of these long-term assets and their contribution to the overall financial health of the business.

User Verism
by
8.1k points