Operating Assets Defined

Operating Assets Defined - Operating Assets Defined

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Operating Assets Defined Operating assets  are long-lived assets that are used in normal business operations.  They are not held for resale to customers. Investments in operating assets are essential  to the success of most businesses. There are three major categories of operating  assets: property, plant, and equipment, sometimes referred to as plant assets or fixed  assets; natural resources; and intangible assets.  Property, plant, and equipment  includes land; land improvements, such as driveways, parking lots, fences, and similar  items that require periodic repair and replacement; buildings; equipment; vehicles; and  furniture.  Natural resources , such as timber, fossil fuels, and mineral deposits, are  created by natural processes that may take thousands or even millions of years to  complete. Companies use up natural resources by cutting or extracting them, so natural 
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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