A company has purchased a tract of land. It expects to build a production planton the land in approximately5 years. During the 5 years before construction, theland will be idle. The land should be reported as:Chooseproperty, plant, and equipment.ot affected byland expense.a long-term investment.an intangible asset.nưnluation of a company's ability to pay current

Long Term Investment:- A Long term investment is also known as non-current assets in accounts. It…

Answered: property, plant, and equipment. o land…

Business

Accounting

property, plant, and equipment. o land expense. a long-term investment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company has purchased a tract of land. It expects to build a production plant
on the land in approximately5 years. During the 5 years before construction, the
land will be idle. The land should be reported as:
Choose
property, plant, and equipment.
ot affected by
land expense.
a long-term investment.
an intangible asset.
nưnluation of a company's ability to pay current

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