A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as —

ব্যাখ্যা

A long-term investment. The land is not being used in operations now and will sit idle for about five years. Property, plant and equipment covers assets in active use. Land is not expensed, because it keeps its value, and it is a physical asset, so it is not intangible.