A plant asset is primarily characterized as b) used in the operations of a business. This refers to tangible assets like machinery, buildings, and equipment that are utilized in the production of goods or services.
Plant assets are essential for a business as they play a crucial role in its daily operations. These assets are not meant for sale in the ordinary course of business, unlike inventory. Instead, they are a long-term investment that helps generate income over time.
Unlike intangible assets, which do not have a physical presence, plant assets are tangible and can often be seen and touched. Additionally, while some assets may be held for future use or not currently in operation, a critical aspect of plant assets is their active involvement in business operations.