Problem:
All of the following are true with regard to both inventory and also with regard to property, plant, and equipment, except:
1. Both sets of assets are tangible.
2. For both sets of assets, cost is not reflected on the income statement until the asset is sold or otherwise disposed of.
3. Both sets of assets are generally presented on the financial statements at cost rather than at fair value. [Note that "fair value" is generally the price that the item can be sold for on the balance sheet date.]
4. Both sets of assets may be written down if the fair value is less than cost.All of the following are true with regard to both inventory and also with regard to property, plant, and equipment, except:
1. Both sets of assets are tangible.
2. For both sets of assets, cost is not reflected on the income statement until the asset is sold or otherwise disposed of.
3. Both sets of assets are generally presented on the financial statements at cost rather than at fair value. [Note that "fair value" is generally the price that the item can be sold for on the balance sheet date.]
4. Both sets of assets may be written down if the fair value is less than cost.