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

Question

Quizplus · Accepted Answer

An operational (fixed) asset is an asset that is used in the normal course of business operations to generate revenue. Option A is a manufacturing plant used by Ford to produce cars, which is an operational asset. The other options are not operational assets: B is land held for sale, C is land held for development, and D is a closed store site.

Which of the Following Would Be Classified as an Operational