Question

multiple select question
select all that apply
a plant asset can be defined by which of the following statements?
its original cost is expensed in the period in which it was purchased.
its original cost is expensed over its useful life.
it is reported on the balance sheet.
it has a life within the business more than one year.
it is a tangible long-term asset.

Explanation:

• Plant assets are long-term tangible assets (so E is correct) with a useful life over one year (so D is correct).
• They are capitalized and reported on the balance sheet (so C is correct), with their cost expensed gradually via depreciation over their useful life (so B is correct, A is incorrect as full cost is not expensed at purchase).

Answer:

B. Its original cost is expensed over its useful life.
C. It is reported on the balance sheet.
D. It has a life within the business more than one year.
E. It is a tangible long-term asset.