A Decrease in Net Assets Arising from Peripheral or Incidental

question 46

Multiple Choice

A decrease in net assets arising from peripheral or incidental transactions is called a(n)

• A) capital expenditure.
• B) cost.
• C) loss.
• D) expense.

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Definitions:

Capital Project

A long-term, capital-intensive investment project with a purpose to build upon, add to, or improve a capital asset.

Expansion

The growth of a business or its operations into new markets, territories, or product lines.

New Venture

Refers to a new business enterprise or startup that is typically characterized by high risk and potential for growth.

Replacement

Refers to the process of substituting an old asset with a new one to maintain or improve operational efficiency.