Each of the Following Statements About Capital Are Correct Except

question 106

Multiple Choice

Each of the following statements about capital are correct except

• A)capital is a "man"-made good used to produce other goods and services.
• B)japan has more capital than any other country in the world.
• C)office buildings and shopping malls are examples of capital.
• D)capital is considered a passive resource.

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Definitions:

Natural Resource

Assets derived from the earth, such as minerals, forests, and water, which are used to produce goods and services.

Depletion Expense

The allocation of the cost of natural resources over their useful life, representing the exhaustion of mineral, oil, or gas deposits.

Mineral Deposit

A naturally occurring accumulation of minerals that can be extracted for economic benefit.

Journalize

The act of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.