Question

multiple choice question
what is a plant asset?
a plant asset is considered temporary and will be used up within one accounting period.
a plant asset refers to a long-term tangible asset used to produce and sell products or services.
a plant asset is the portion of a current asset which will be used up in the next accounting period.
a plant asset refers to the stock purchased by a business held for future investment.

Explanation:

Plant assets are long-term (non-current) tangible resources that a business uses repeatedly over multiple accounting periods to generate revenue through producing or selling goods/services. The other options are incorrect: temporary/short-term assets are current assets, not plant assets, and stock held for investment is an investment asset, not a plant asset.

Answer:

B. A plant asset refers to a long-term tangible asset used to produce and sell products or services.