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1 FINANCE MCQS

Plants and equipment are examples of ____________?

  • Long-term fixed assets
  • Short-term fixed assets
  • Short-term working capital
  • Long-term working capital
Correct Answer: A. Long-term fixed assets

Detailed Explanation

Plants and equipment are considered long-term fixed assets because they are tangible assets used in business operations for a long period. They are not intended for immediate sale and provide value over multiple accounting periods, forming a core part of a company’s capital structure.

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