Which of the Following Would Not Be Considered Physical Capital

question 54

Multiple Choice

Which of the following would not be considered physical capital?

• A) A combine harvester
• B) Fertile soil
• C) A factory
• D) A forklift

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Definitions:

Accounting Records

Documentation and books that keep track of all financial transactions, assets, liabilities, income, and expenses of a business.

Accounting Equation

The fundamental equation stating that Assets = Liabilities + Owner's Equity, used as the basis for double-entry bookkeeping.

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.