Question

A machine used to produce coffee cups would be considered as what?

Answer 1

A machine used to produce coffee cups would be considered as expresso machine

Answer 2

We need to answer the question that a machine used to produce coffee cups would be considered as what      

• A coffee cup making machine would be considered  a fixed asset in a coffee cup manufacturing unit

• A fixed asset can be defined as long term assets owned by the company, which are not sold or liquidated in the short term
• They are tangible assets
• In a manufacturing unit, any heavy machine which uses raw materials to process and output the finished product is a fixed asset.
• In this case, the output from the machine is coffee cups
• And hence the coffee cup making machine is a fixed asset and appears on the asset side of the balance sheet