Which of the following would be classified as an operational (fixed)asset?
A)Land purchased and held for sale by a realtor.
B)Land purchased and held for development by Wal-Mart as a new store site.
C)Land and buildings owned by Toys "R" Us that are store sites closed due to restructuring and consolidating operations.
D)A Ford Motor Company manufacturing plant used to manufacture the Focus line in Oakville,Ontario.

Question

Quizplus · Accepted Answer

A Ford Motor Company manufacturing plant used to manufacture the Focus line in Oakville, Ontario would be classified as an operational (fixed) asset because it is a facility used in the production process of a company's goods or services. Options A, B, and C are all examples of land held for investment purposes, development, or closed stores and thus would not be considered operational (fixed) assets.

Which of the Following Would Be Classified as an Operational