Which of the Following Is NOT Considered Capital

question 14

Multiple Choice

Which of the following is NOT considered capital?

• A) an assembly line at a General Motors plant
• B) a computer used by your instructor for presentations in class
• C) stocks and bonds that are sold by Pepsico
• D) the furniture in the President's office
• E) a nail gun used for building houses

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Definitions:

Statement of Cash Flows

A financial report detailing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.

Borrowing

The act of receiving something from someone with the intention of returning it or its equivalent.

Increasing Assets

Refers to the growth or escalation in the value of assets owned by a business or individual.

Accrued Expenses

Costs that have been incurred but not yet paid for, recognized under the accrual basis of accounting.