Which of the Following Would Not Be Classified as a Capital

question 103

Multiple Choice

Which of the following would not be classified as a capital resource?

• A) The Empire State Building.
• B) A Caterpillar bulldozer.
• C) A Macintosh computer.
• D) 100 shares of stock in General Motors.

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Definitions:

Classified Balance Sheet

A financial statement that segregates assets and liabilities into current and long-term categories, providing a detailed snapshot of a company’s financial position.

Adjusting Entries

Accounting adjustments used to ensure that revenue and expense recognition principles are followed accurately in the financial statements.

Reversing Entries

Optional accounting procedures that are used to cancel out adjusting entries of the previous accounting period in the new period.

Interest Expense

The cost incurred by an entity for borrowing funds, often reported on the income statement.