ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 93

TRUE-FALSE—Conceptual
1. Assets classified as Property, Plant, and Equipment can
be either acquired for use in operations, or acquired for resale.
2. Assets classified as Property, Plant, and Equipment
must be both long-term in nature and possess physical
substance.
3. When land with an old building is purchased as a
future building site, the cost of removing the old building is
part of the cost of the new building.

4. Insurance on equipment purchased, while the
equipment is in transit, is part of the cost of the equipment.

5. Special assessments for local improvements such as
street lights and sewers should be accounted for as land
improvements.