These assets include inventory, accounts receivable, and prepaid expenses, among others. Fixed assets cannot be converted into cash immediately, as they are illiquid assets. The land is also a fixed asset and it will not be considered a current asset despite being used for operations.

Which of the following is not property classified as property, plant, and equipment?

Terms in this set (14) Why is land classified separately from other tangible long-term assets? Equipment, furniture, fixtures, buildings, structures, land improvements and vehicles. Land is not considered property, plant, and equipment.

What is an indicator of profitability?

Profitability analysis is an estimate of the company’s return on investment. The most commonly used profitability indicators are: net profit margin, EBITDA margin, EBIT margin, return on equity return on invested capital (ROI), return on equity and return on capital employed.

Which of the following is not classified as expenses?

Answer: The correct answer among the listed given choices is letter c. Dividends are not considered an expense but is considered under equity section.

Which of the following is classified as a tangible asset?

Assets like property, plant, and equipment, are tangible assets. These assets include: Land. Vehicles.

How do you evaluate profitability?

Profitability can be evaluated in numerous ways, but two of the most popular metrics are profit margin and return on assets. Profit margin tells you how much profit a business makes for every dollar in sales. ROA measures the ratio of a company’s net income to its total asset base.

Which of the following is NOT example of fixed asset?

Bank balance is part of current assets. Fixed Assets are long term tangible assets which consists of land, building, machinery etc. Current assets are short term assets which can be converted in to cash on need basis. Current assets may consist of inventory, debtors, bills receivables, cash on hand, bank balance etc.