Slide 9-2 Plant assets Long-lived assets acquired for use in business operations Similar to long-term prepaid expenses Date Description Credit As years pass, and the The cost of plant assets services are used. the is the advance purchase cost is transferred to of services depreciation expense. Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999?The McGraw-Hill Companies, Inc., 1999 Slide 9-2 Irwin/McGraw-Hill Plant Assets Long-lived assets acquired for use in business operations. Similar to long-term prepaid expenses The cost of plant assets is the advance purchase of services. Date Description Debit Credit As years pass, and the services are used, the cost is transferred to depreciation expense