The plant and equipment are examples of _____________?
Correct answer: A. long term fixed assets
- A. long term fixed assets
- B. short term fixed assets
- C. short term working capital
- D. long term working capital
Explanation
Plant and equipment are used for production over multiple accounting periods and are not normally converted into cash through routine operations. They are therefore long-term fixed assets.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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