Which of the Following Would NOT Be Considered a Consumption

question 341

Multiple Choice

Which of the following would NOT be considered a consumption good?

• A)a new sweater
• B)tools used to cut metal on an auto production line
• C)a jar of Skippy peanut butter
• D)a bottle of Scotch whiskey

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Definitions:

Interest

A charge for borrowed money, generally a percentage of the borrowed amount.

Dividends

Dividends are portions of a company's earnings paid to shareholders as a distribution of profits.

Non-Operating Activities

Transactions and events that are not related to the primary operations of a business, such as investment income or losses from the sale of assets.

Asset Disposals

The process of getting rid of an asset through sale, trade, or removal, often because it's obsolete, no longer needed, or to gain cash.