Question

To be included in property, plant, and equipment, an asset must have all of the following except Group of answer choices a. the asset must be held for use. b. the asset must have an expected life of a normal operating cycle. c. the asset must be tangible in nature. d. the asset must have an expected life of more than one year. g

Answer 1

Answer:

b. the asset must have an expected life of a normal operating cycle.

Explanation:

A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.

Hence, to be included in property, plant, and equipment, an asset must have all of the following;

I. The asset is expected or required to be held for use

II. It must be tangible in nature.

III. It is required to have an expected life of that is typically above a year.