Long Lived or plant assets include _________.

land, building, stock, equipment and debtors

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land, inventories, equipment, cash and Bank Balance

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land, Building and equipment

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land, inventories, cash receivable and debtors

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Solution

The correct option is C land, Building and equipment
Long-lived assets are land improvements, buildings, furnishings, equipment etc. and have limited useful lives. Therefore, the cost of those assets must be allocated to those limited accounting periods.

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Similar questions

Q. Arrange assets in the order of permanence:
Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill, Plant and Machinery, Furniture, Loose Tools, Marketable Securities.

Q. From the following compute Current Ratio:

	₹		₹
Trade Receivable (Sundry Debtors)	1,80,000	Bills Payable	20,000
Prepaid Expenses	40,000	Sundry Creditors	1,00,000
Cash and Cash Equivalents	50,000	Debentures	4,00,000
Marketable Securities	50,000	Inventories	80,000
Land and Building	5,00,000	Expenses Payable	80,000

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.

Q. Calculate the following ratio on the basis of following information:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

	Rs.
Gross Profit	50,000
Revenue from Operations	1,00,000
Inventory	15,000
Trade Receivables	27,500
Cash and Cash Equivalents	17,500
Current Liabilities	40,000
Land & Building	50,000
Plant & Machinery	30,000
Furniture	20,000

Bobbie opened a consulting firm and copleted these trannsactions during November, 2005

(a) Invested Rs 4,00,000 cash and office equipment with Rs 1, 50,000 in a business called Bobbie Consulting.

(b) Purchased land and a small building . The land was worth Rs. 1, 50,000 and the building worth Rs 3,50,000. The purchase price was price was paid with Rs 2,00,000 cash and a long term note payable for Rs 8,00,000.

(d) Bobbie transferred title of motor car to the business. The motor car was worth Rs 90,000.

(e) Purchased for Rs 30,000 additional office equipment on credit.

(f) Paid Rs 7,500 salary to the office manager.

(g) Provide services to a client and collected Rs 30,000.

(h) Paid Rs 4,000 for the month's utilities.

(i) Paid supplier created in transaction (c).

(j) Purchase new office equipment by paying Rs 93,000 cash and trading in old equipment with a recorded cost of Rs 7,000.

(k) Completed services of a client for Rs 26,000. This amount is to be paid within 30 days.

(l) Received Rs 19,000 payment from the client created in transaction (k).

(m) Bobbie withdrew Rs 20,000 from the business.

Analyse the above stated transactions and open the following T- accounts

Cash, client, office supplies, motor car, building, land , long term payables, capital , withdrawals, salary, expense and utilies expense.

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Long Lived or plant assets include _________.

The correct option is C land, Building and equipmentLong-lived assets are land improvements, buildings, furnishings, equipment etc. and have limited useful lives. Therefore, the cost of those assets must be allocated to those limited accounting periods.

The correct option is C land, Building and equipment
Long-lived assets are land improvements, buildings, furnishings, equipment etc. and have limited useful lives. Therefore, the cost of those assets must be allocated to those limited accounting periods.