Which of the Following Is Not an Example of Economic

question 20

Multiple Choice

Which of the following is not an example of economic capital?

• A)a desk in a classroom
• B)a bond issued by IBM
• C)a delivery truck used by Federal Express
• D)an electric plant used by your local utility to generate electricity
• E)All of the above are examples of economic capital.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Perpetual Inventory Method

An inventory accounting method where updates to the inventory records are made immediately following each sale or purchase.

Sales Returns and Allowances

A reduction in sales revenue that occurs when customers return goods or receive allowances for unsatisfactory goods, impacting the net sales figure.

Merchandise Inventory

Goods or products that a company holds for the primary purpose of selling them to customers.