• Unit 8: Accounting for Property, Plant, and Equipment

    Property, plant, and equipment require the largest amount of investment for a company. This unit introduces the life cycle of tangible long-term assets: acquisition, depreciation, and disposal. This unit also includes other long-term assets like natural resources and intangible assets. Businesses like mines and lumber companies account for resources that are extracted from the environment. The most common intangible asset is goodwill, which is recorded when acquiring a company. Major asset purchases can have a large impact on cash flow, taxes, and long-term profitability. It is important to understand how the accounting is handled,and what options a company has within the accounting rules, so smart strategic decisions can be made.

    Completing this unit should take you approximately 8 hours.

    • 8.1: Property, Plant, and Equipment

    • 8.2: Plant Asset Disposal, Natural Resources, and Intangible Assets

    • Unit 8 Practice