Long-Term Assets (Plant Assets) - Financial Accounting

The video tutorial explains the concept of long-term assets, specifically plant assets, which are tangible assets used in a company's operations for multiple years. It covers the synonymous terms for plant assets, such as fixed assets and PPE, and provides examples like buildings, cars, and land. The tutorial also outlines how these assets are handled, costed, and expensed in accounting.

What are long-term assets also known as?

• Fixed assets

• Current assets

• Intangible assets

• Liquid assets

Which of the following is an example of a plant asset?

• Office building

• Cash

• Inventory

• Accounts receivable

What is the primary characteristic of a plant asset?

• It is intangible

• It is used for a single accounting period

• It is easily convertible to cash

• It is used in operations for multiple years

How are plant assets typically managed?

• They are sold quickly

• They are expensed immediately

• They are ignored after purchase

• They are costed and expensed over time

Which term is synonymous with plant assets?

• Short-term investments

• Current liabilities

• Fixed liabilities

• Property, plant, and equipment