Mike Purchased a 1968 Chevy Corvette in 2009 for $30,000

question 63

Multiple Choice

Mike purchased a 1968 Chevy Corvette in 2009 for $30,000 and a year later he sold it for $36,000. Due to these transactions

• A) Mike earned a capital loss of $6,000.
• B) Mike earned a dividend of $36,000.
• C) Mike earned a dividend of $600.
• D) Mike earned a capital gain of $6,000.

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Definitions:

Percentage Increase

A measure of how much a quantity has grown relative to its previous value, expressed as a percentage.

Horizontal Analysis

A financial analysis technique that compares historical financial data across consecutive periods to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) or income and expenses is represented as a proportion of a total account.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.