Which One of the Following Is a Capital Asset

question 29

Multiple Choice

Which one of the following is a capital asset?

• A)automobile held by car dealer for sale
• B)automobile used for personal purposes
• C)automobile used in taxpayer's trade or business
• D)B and C only

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.

Cost of Goods Sold

The historical cost of products sold as reported in the income statement.