Questions: Which of the following is classified as a plant asset? Multiple Choice Equipment Accounts receivable. Cash. Supplies. Merchandise inventory.

The answer is the first one: Equipment.

Explanation for each option:

• Equipment: This is classified as a plant asset. Plant assets, also known as fixed assets, are long-term tangible assets used in the operation of a business, such as machinery, buildings, and equipment.

• Accounts receivable: This is not a plant asset. It is a current asset representing money owed to the business by customers for goods or services delivered on credit.

• Cash: This is not a plant asset. It is a current asset and represents the most liquid form of assets, used for day-to-day operations.

• Supplies: This is not a plant asset. Supplies are typically considered current assets, as they are expected to be used up within a year.

• Merchandise inventory: This is not a plant asset. It is a current asset, representing goods available for sale in the normal course of business.

In summary, equipment is the only option classified as a plant asset.