Which of the Following Is a Characteristic of a Capital

question 130

Multiple Choice

Which of the following is a characteristic of a capital asset?

• A)The item will be used for a long period of time.
• B)The item involves a significant sum of money.
• C)None of these characteristics are correct.
• D)Both A and B are correct.

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Definitions:

T-bill

A short-term government security with maturity periods ranging from a few days to 52 weeks.

Prevailing Yield

The current return rate on an investment, typically referring to bonds or other fixed-income securities.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money invested or borrowed, without compounding.

Convert Communicator

This term refers to an individual who adopts new beliefs or practices and then acts to persuade others to adopt these new beliefs or practices as well.