Question

Which of the following is not a major characteristic of a plant asset?

Select one:

a. Acquired for use.

b. The useful life is greater than one year.

c. Acquired for resale.

d. Possesses physical substance.

Clear my choice

The bonds should be classified as long-term debts.

Select one:

a. True.

b. False.

Answer 1

Solution: 1

Plant Assets: Plant Assets is Fixed assets of the company which is acquired for more than one year and for used in production of articles or things and Plant’s physical present should be must

Every plant is acquired for production of articles and things it mean option c “Acquired for resale” is incorrect.

Plants are resold only at the time of expire of life of plant or Technology become outdated.

As per the above option A , B and D is correct but option C is not correct

Answer = Option C =

Solution: 2

The bonds are always classified as long term debts because no one bonds are issued for one year or shorter period.

So it means the given statement is correct.

Answer : Option A = True