Which of the following statements regarding the nature of long-lived assets is true?
A) Long-lived assets are assets that never decline in value.
B) Another name for a tangible long-lived asset is a fixed asset.
C) Long-lived assets have useful lives between 10 and 20 years.
D) Long-lived assets are defined as assets that are no longer being depreciated.

Question

Quizplus · Accepted Answer

A tangible long-lived asset, such as property, plant, and equipment, is also commonly referred to as a fixed asset as its value is fixed and not easily liquidated. Option A is incorrect as most long-lived assets do decline in value over time due to wear and tear or obsolescence. Option C is partially correct as some long-lived assets may have useful lives between 10 and 20 years, but not all. Option D is incorrect as long-lived assets are defined as assets with useful lives longer than one year that are subject to depreciation.

Which of the Following Statements Regarding the Nature of Long-Lived