Fundamental Accounting Principles CH10

Question 1

Plant Assets

Answer 1

tangible assets used in a company’s operations that have a useful life of more than one accounting period.
Key Features:
1. used in operations
2. have useful lives that extend over more than one account period.
Issues:
1. computing the costs of plant assets
2. allocating the cost of plant assets
3. accounting for subsequent expenditures to plant assets
4. recording the disposal of plant assets