CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Each of the following should be classified as plant and equipment on the balance sheet of Chin's Nursery except ______.

A. the office building or a new machine
B. land on which the nursery is located
C. plants held for resale to customers
Correct Answer: C

User Contributed Comments 10

User Comment
danlan That is inventory.
CoffeeGirl anything that is intended to sell to customers is classified as inventory, even it is a plant, equipment, machine, or a building.
MFTIOA Assets-Held-for-Sale

don't know if it's considered inventory, a candle company can't consider its for-sale wax factory as inventory can it?
yesandy11 But it's a plant...
SKIA It is not considered inventory. It is considered an investment. A plant held for re-sale seems as though it is a short term item, i.e. held for resale. If the plant was being held for speculative purposes it would be a long term investment.
Inaganti6 Do not classify the plants under the plant category....how contrarian
davidkhang LOL
Miqizjg Anything that is not intended to be used for operation of business is not considered as plant and equipment
manstee I got confused with plant vs plants.
Freddie33 Anyone else thinking of plants as in like trees?
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