Capital Assets Are Long-Term Assets That

question 15

Multiple Choice

Capital assets are long-term assets that:

• A) are bought and sold in the regular course of business.
• B) have an expected use of less than one year.
• C) have an ongoing effect on the organization's operations.
• D) are generally expensed.
• E) are acquired for fairly small sums of money.

Define and apply the concept of sunk costs in decision-making.

Explain and identify erosion costs in the context of new projects.

Calculate and comprehend the tax benefits of selling assets and depreciation.

Assess changes in net working capital and its impact on project cash flows.

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Definitions:

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A sexual orientation characterized by attraction to individuals of the opposite gender.

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Uterus

A hollow, thick-walled, muscular organ held in the pelvic cavity by flexible ligaments and supported by several muscles. Also known as womb.