Passive Is an Increase in the Value of Property That

question 22

Short Answer

Passive is an increase in the value of property that is due to inflation or market forces rather than to the active efforts of the owner.

---

Definitions:

External Users

Individuals or entities outside of an organization who have an interest in the organization's financial information, such as investors and creditors.

Investment Decisions

Choices made by individuals or enterprises regarding where, when, and how much to invest in order to achieve financial goals or maximize returns.

Financial Information

Data related to the financial status of an entity, including balance sheets, income statements, and cash flow reports, used by stakeholders to make informed decisions.

Accounting Records

Documents and books that systematically record financial transactions and positions of a business.