Want this question answered?
The values of assets such as plants or inventories can change elastically. Using costs instead of values for elastic assetsÊis more accurate for calculating expenses.
Plant assets are costs that include all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use, (Wild, Shaw & Chippetta, 2009). Some of the costs are land, land improvement, buildings, machinery, equipment and lump sum purchases. Plant assets are different from other assets for a couple reasons. One is that they are used in the companies operations. Another difference is that they are used over several accounting periods.
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
NO
The values of assets such as plants or inventories can change elastically. Using costs instead of values for elastic assetsÊis more accurate for calculating expenses.
Plant assets are costs that include all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use, (Wild, Shaw & Chippetta, 2009). Some of the costs are land, land improvement, buildings, machinery, equipment and lump sum purchases. Plant assets are different from other assets for a couple reasons. One is that they are used in the companies operations. Another difference is that they are used over several accounting periods.
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
In accounting, inventory is considered a "for sale" asset, plant assets are not.
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
NO
Plant Assets are included in this.
Some assets lose its value like plant and machinery as they lose its power and they are known as fixed assets
Real assets are physical assets such as plant, machinary, vehicles, stock/ inventory. Financial assets, are cash, bonds, shares etc., etc.
current assets; long-term investments; property, plant, and equipment; and intangible assets.
Objective of assets is to utilized them for earning revenue for business like plant and machinery etc.
Depreciation of plant and equipment is considered an expense because it represents the allocation of the cost of these assets over their useful lives. As assets are used in the production of goods or services, their value decreases over time due to wear and tear, obsolescence, or usage. Recognizing depreciation as an expense in the income statement helps to reflect the decrease in the value of these assets and ensures a more accurate representation of the company's profitability.