 In this presentation, we'll take a look at multiple choice questions related to property plant and equipment. First question. Property plant and equipment is A. Tangible assets with a useful life of more than one year that are used in business operations, B. a liability, C. a current asset, D. Expensed in the year purchased, or E. are recorded when cash is paid. We'll go through this one more time, go through the process of elimination, see if we can eliminate some of the options. Question. Property plant and equipment is A. Tangible asset with a useful life of more than one year that are used in business operations. That sounds pretty good for what property plant and equipment is, so we'll go through the rest of them. I'll leave that option here. B says a liability. Liability is typically not a liability. We're talking about property plant and equipment. It's some type of asset we purchased it to use in the future, such as equipment or something like that. It wouldn't be a liability. We'll cross that one out. C says a current asset. That's a bit closer because it is an asset, but it's not going to be a current asset. It's going to be a long-term asset, so it's not going to be C. D says, Expensed in the year purchased. It's not going to be Expensed in the year purchased. In the property plant and equipment, we're going to capitalize it in the year of purchase and therefore not Expensive, so it's not going to be D. E says, Are recorded when cash is paid? That's not necessarily the case because we may not have paid cash at the point and time of purchase. We may have purchased it on account or financed it in some way. It's not going to be necessarily E. A looks like the correct answer. Just from a multiple-choice type standpoint, if we do see a longer, more detailed answer that might be hedging itself a little bit more, that oftentimes might be one to consider more because the fact that it's longer may be because it's trying to give more detail and be a bit more specific in order to make sure it's right in all circumstances. Let's with A, question and answer. Property plant and equipment is a tangible asset with a useful life of more than one year that are used in business operations. Next question. Salvage value is, A, the cost less accumulated depreciation, B, not material, C, estimate property plant and equipment value at the end of useful life, D, not used in the calculation of depreciation or E, the net value of the asset. We'll go through this again and go through the process of elimination. We have the question being the salvage value is, A, the cost less accumulated depreciation. That's the book value, the cost less accumulated depreciation. It wouldn't be equivalent to the salvage value unless it was at the end of the useful life where we're left with the salvage value. I don't think it's going to be A. B says not material. That might be, it might be not material, but that's not the definition, materiality, meaning it might be significant to decision making, but it doesn't seem right to be B. C says estimate property plant and equipment value at the end of its useful life. That seems pretty reasonable. At the end of its useful life, salvage value, I'll keep that for now, D says not used in the calculation of depreciation and typically it is going to be used in the calculation. If you use different methods, you might get a little confused on whether it's used or not because it's the straight line method. It's there for sure. We take the cost minus the salvage, but in the double declining balance, we get to the end of the double declining balance and that's when it's taken into account because we've got to make a bit of an adjustment at the final year in order to take an account for the salvage. But in any case, it's not D. E says the net value of the asset, the net value of the asset, which you would think would be the same thing as the book value, the cost minus the accumulated depreciation. I don't think that's the salvage unless it was at the end of the life of the asset. I believe we're left with C. Question, answer. Salvage value is C. Estimate property plant and equipment value at the end of its useful life. That means, of course, that we're looking at what we think the property plant and equipment will be worth and therefore be sold for. At the end of the time that we use it, it's useful life.