Question

Wultec International Inc., a Canada-based manufacturer, produces end-of-line packaging equipment, such as wrapping machinery, which is used in warehouses to cover pallets and protect their contents. Wultec end-of-line packaging equipment, when purchased for warehouse use, is an example of which type of business product?

Answer 1

Fixed asset

Step-by-step explanation:

A fixed asset refers to a tangible asset that purchased for long term use in the operation of the firm in with the aim of generating income.

Fixed assets of a firm are not meant to be consumed or sold to obtain cash within a year.

Fixed assets include land, buildings, and equipment which are usually shown as property, plant, and equipment (PP&E) in the balance sheet.

In the question, Wultec end-of-line packaging equipment, when purchased for warehouse use, is a type of a fixed asset. The reason is that it is not meant to be resold or consumed within a year but to be used in warehouses to cover pallets and protect their contents.