PRC-1 · Chapter 6 · Question 2 of 100
Which of the following assets should NOT be classified as Property, Plant, and Equipment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A commercial building held specifically for resale by a real estate company.
Explanation
A building held for resale in the ordinary course of business is classified as Inventory (IAS 2), not Property, Plant, and Equipment (IAS 16).
More Property, Plant and Equipment MCQs
- Q4Which of the following costs should be EXCLUDED from the initial capitalized cost of a newly acquired machine?
- Q5How should refundable sales taxes (e.g., input VAT) paid on the purchase of a non-current asset be treated in the accounting records?
- Q6Which of the following is considered a 'Capital Expenditure'?
- Q7If a business incorrectly records the purchase of a new computer (capital expenditure) as office stationery (revenue expenditure), what is…
- Q8Which of the following defines the 'Depreciable Amount' of a non-current asset?