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Property, Plant, and Equipment – PP&E Definition
Property, plant, and equipment (PP&E) are long-term assets vital to business operations and not easily converted into cash. Purchases of PP&E are a signal that management has faith in the long-term outlook and profitability of its company.
What Is Property, Plant, and Equipment (PP&E)?
Property, plant, and equipment (PP&E) are physical or tangible assets that are long-term assets that typically have a life of more than one year.
Impact of Capital Expenditures on the Income Statement
Learn the direct and indirect effects a capital expenditure (CAPEX) may immediately have on a the income statement and profit of a business.
How Is Computer Software Classified as an Asset?
Although computer software is often thought of as an intangible asset, it can be classified as a tangible asset if it meets certain criteria of property, plant and equipment.
Capital Expenditure (CapEx) Definition
Capital expenditures (CapEx) are funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.
Understanding Methods and Assumptions of Depreciation
Examine how methods and assumptions in depreciation impact the value of long-term assets and how these factors can affect short-term earnings results.
How to Reopen Your Small Business Safely
Planning to reopen your small business during the COVID-19 pandemic? Find out how to be safe, be smart, and protect your workers and your customers.
How to Evaluate a Company's Balance Sheet
A company's balance sheet should be interpreted when considering an investment as it reflects their assets and liabilities at a certain point in time.
Current and Noncurrent Assets: The Difference
Current assets are assets that are convertible to cash in less than a year; noncurrent assets are long-term assets. Here, we cover both.
Fixed Asset Definition
A fixed asset is a long-term tangible asset that a firm owns and uses to produce income and is not expected to be used or sold within a year.