Capital Assets

question 7

Multiple Choice

Capital assets:

• A)have an expected use of less than one year.
• B)have little or no effect on the organization's operations.
• C)are generally expensed.
• D)are acquired for fairly small sums of money.
• E)are not bought and sold in the regular course of business.

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Definitions:

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.