Asset: An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash. Current Assets: A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle. Long-Term Assets: Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments. To explain: The characteristics of plant asset those are different from other asset.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I need assistance with this general accounting question using appropriate principles.

General accounting

I need help solving this general accounting question with the proper methodology.

Answer 2

Question

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Answer 6

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.

Answer 7

Chapter 10, Problem 1DQ

To determine

Asset:

An asset means a possession of property tangible or intangible which has some value; such that it can be realized in monetary terms and such asset can be liquidated in short-term or long-term approach so as to derive its value in cash.

Current Assets:

A current asset can be as the asset of any entity that is in the form of cash, cash equivalent or in a form which can be converted into cash within a year. Generally, the current are defined to be the ones which can be liquidated within a year but if the company's operating cycle exceeds one year even though the assets are regarded as current assets until they get converted into cash ultimately as the last stage of operating cycle.

Long-Term Assets:

Long-term assets are the assets possessed by the company which cannot be liquidated before one year. The minimum maturity period for the said assets is one year. These assets are being recorded in the books at the purchase price and are adjusted by the depreciation that takes place due to its use over a period of time and impairment expenses. Also, long term asset of any entity includes its buildings, machineries, fixed assets and long term investments.

To explain: The characteristics of plant asset those are different from other asset.

Answer 8

Expert Solution & Answer

Explanation of Solution

Following are the characteristics of plant asset that are different from other assets:

• Unlike other assets these plant assets are part of the operations of the business process. The plant assets are utilized directly to the production process while the other assets of the company only do aid the core activities of the business.

• The plant assets’ life is carried forward over several accounting period and takes major part in the revenue generating activities of the company.

• Plant assets face integral disposal or change over different accounting period as the plant asset is more prone to changes in terms of technological advancement, on the other hand it is not so with assets like land and buildings.

Hence, plant assets are different from other assets.