Tracking Assets and Sales Practice Test

PP&E stands for Property, Plant, and Equipment. This refers to long-term, tangible assets a company uses in its operations to produce goods or services and that aren’t intended for sale. On the balance sheet, these assets appear under non-current assets and are generally depreciated over their useful lives (except for land, which isn’t depreciated). Examples include land, buildings, manufacturing plants, machinery, vehicles, and office equipment. This category helps distinguish operating assets from cash, inventory, or investments.

The other options don’t match standard asset terminology: they combine words that aren’t used together as a recognized asset group.