Asked by
Cesar de la Torre
on Nov 13, 2024
Verified
Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet.
Standby Equipment
Equipment that is kept on hand and ready to be used as a backup in case primary equipment fails.
Property, Plant, Equipment
Long-term tangible assets used in the operation of a business that are expected to provide benefits for more than one year.
- Recognize the appropriate classification of assets on a balance sheet.
Verified Answer
IB
Learning Objectives
- Recognize the appropriate classification of assets on a balance sheet.
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