Which of the following items is NOT considered PPE?

Property, Plant, and Equipment (PPE) encompasses tangible fixed assets that are used in the production or supply of goods and services, or for administrative purposes, and are expected to be used over a long period. Typical examples of PPE include trucks, delivery vans, and shop fittings, as they are physical assets directly involved in operations.

Patents, on the other hand, fall under the category of intangible assets. They represent a legal right to a process, design, or new invention, and do not have a physical presence. This difference in classification is critical in accounting, as PPE is depreciated over time due to wear and tear, while intangible assets like patents are amortized based on their useful life.

Understanding the distinction between tangible and intangible assets is essential in accounting, as it affects financial reporting and how different assets are treated in the financial statements. Recognizing that patents do not fit the definition of PPE helps clarify why they are not included in this category.