What Type of Investment Occurs When Claims to Wealth in the Form

question 84

Multiple Choice

What type of investment occurs when claims to wealth in the form of real assets are created or acquired?

• A)financial investment
• B)real investment
• C)contractual investment
• D)voluntary investment

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Definitions:

Capital

Refers to the financial assets or resources that individuals or businesses have available to invest or spend on building and growing their operations.

Expense Account(s)

Accounts used to record the costs incurred in the operation of a business, such as rent, utilities, and salaries, which are used to calculate net income.

Assets

Resources owned by a business that have economic value and can be used to meet debts or commitments.

Companionship

A close relationship between individuals where they share company and support, often providing emotional comfort and friendship.