What is classified as Plant, Property, and Equipment (PPE)?

The classification of Plant, Property, and Equipment (PPE) includes physical assets that a business acquires for long-term use in operations, distinguishing them by their tangible nature and their expected longevity. These assets are essential for any company's functioning and typically include items such as buildings, machinery, vehicles, and land. The defining characteristic of these assets is that they are not intended for resale in the ordinary course of business; instead, they are employed to generate revenue over multiple years.

Considering this definition, the choice that aligns with the characteristics of PPE correctly highlights the purpose of these assets—acquisition for business use—while also noting their long useful life, which supports the stability and growth of the business over time.

The other options represent different asset categories that do not fit the criteria for PPE. For example, assets held for resale are classified as inventory and are not intended for long-term use in operations. Intangible assets, which include things like patents and trademarks, do not have a physical presence, hence they are not categorized as PPE. Short-term investments in securities are classified as current assets since they are expected to be converted to cash or used within a year, which again does not fit with the long-term nature of PPE.