Question

Which one of the following is not a characteristic of property, plant, and equipment?

A. They are acquired for use in operations.
B. They are long-term in nature and are always subject to depreciation.
C. They possess physical substance.
D. All of these answer choices are characteristics of property, plant, and equipment.

Answer 1

D. All of these answer choices are characteristics of property, plant, and equipment.

Step-by-step explanation:

The correct answer is D. All of these answer choices are characteristics of property, plant, and equipment. Property, plant, and equipment (PPE) are long-term assets that are acquired for use in operations. They possess physical substance, such as land, buildings, machinery, and vehicles. Additionally, PPE is subject to depreciation, which represents the gradual reduction in the value of the assets over time.