Future Business Leaders of America (FBLA) Accounting Practice Test

Which of the following would likely be classified as a personal property?

1. A factory building

2. A company vehicle

3. Land owned by a business

4. Office furniture in a corporate office

The correct answer is: Office furniture in a corporate office

The classification of personal property generally refers to movable items that are not permanently affixed to a structure or land. Office furniture in a corporate office fits this definition as it consists of items like desks, chairs, and filing cabinets that can be relocated without altering the building or land. In contrast, a factory building and land owned by a business are classified as real property, as they are permanently attached to the land and are not moveable. A company vehicle is considered personal property in a broader sense but is specifically classified as a form of tangible asset distinct from real property. Office furniture, being movable assets that directly contribute to the operations of a business, is best classified as personal property, making it the correct answer.