Categories of Long-Term (Plant) Assets - Accounting

Why is land considered unique among plant assets?

• It is used up over time.

• It requires frequent maintenance.

• It has an unlimited life.

• It is the most expensive asset.

Which of the following is an example of a land improvement?

• A mountain

• A river

• A parking lot

• A natural forest

What distinguishes land improvements from land itself?

• Land improvements are natural features.

• Land improvements have an unlimited life.

• Land improvements are not expensed.

• Land improvements are expensed over time.

Which category includes vehicles and computers?

• Buildings

• Land Improvements

• Machinery Equipment

• Land

What is a common characteristic of buildings and machinery equipment?

• They are not expensed over time.

• They have an unlimited life.

• They are expensed over time.

• They are natural resources.