Delivery vans are considered what type of asset?

Delivery vans are classified as Property, Plant, and Equipment (PPE) because they are tangible assets that are used in the operations of a business for an extended period. PPE includes physical items that a company utilizes to produce goods or deliver services, and delivery vans fit this definition perfectly.

These assets are not intended for resale and are essential for a company’s operational activities. They typically have a useful life longer than one year and depreciate over time due to wear and tear. This distinguishes them from current assets, which are expected to be converted to cash or used up within a year, and from intangible assets, which lack physical substance and include items like trademarks or patents. Liabilities, on the other hand, represent obligations that a company owes to outside parties and do not relate to the company’s own assets.