Which of the Following Is a Capital Asset

question 65

Multiple Choice

Which of the following is a capital asset?

• A) Accounts receivable of an accrual basis business
• B) Business equipment
• C) Self-created goodwill
• D) Purchased goodwill

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Definitions:

Restoring

the process of bringing something back to its original state by repairing or cleaning it.

Nonrenewable Resources

Resources that cannot be replenished at the same rate they are consumed, such as oil, coal, and natural gas.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials.

Efficient Use

The optimal allocation and utilization of resources to achieve a particular goal or outcome with minimal waste or expense.