Q. Show the examples of long-term assets?
Property, plant, and equipment are assets with helpful lives of more than one year a company acquires them for use in the business rather than for resale. These assets are called equipment and in property The Home Depot's balance sheet. The terms plant assets or fixed assets are as well used for plant, property and equipment. To concur with the order in the heading balance sheets generally list property first plant next and equipment last. These items are fixed assets for the reason that the company uses them for long-term purposes. We describe several kinds of plant, property and equipment next.
Land is ground the company utilize for business operations this includes ground on which the company locates its business buildings and that is used for outside storage space or parking. Land owned for investment isn't a plant asset because it is a long-term investment.
Buildings are structures the company utilize to carry on its business. Once more the buildings that a company owns as investments are not plant assets.
Office furniture comprises desks, chairs, file cabinets and shelves.
Office equipment comprises copiers, FAX machines, computers and phone answering machines.
Leasehold improvements are any physical modifications made by the lessee to the leased property when these benefits are expected to last beyond the current accounting period. An illustration is when the lessee builds room partitions in a leased building. The lessee is the one getting the rights to possess and use the property.
Construction in progress represents the partly completed stores or other buildings that a company such as The Home Depot plans to occupy when completed.