Which of the Following Is Not a Capital Asset

question 82

Multiple Choice

Which of the following is not a capital asset?

• A)Office building used as a rental property by a real estate professional.
• B)Antique automobile.
• C)Land held for investment.
• D)Stock held for investment.

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Definitions:

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits.

Discontinued Operations

Components of a business—such as segments or subsidiaries—that have been disposed of or are held for sale, and are reported separately in financial statements for clearer assessment by investors.

Loss on Disposal

Loss on disposal occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, resulting in a financial loss.

Bad Debt Expense

An expense reported on the income statement, representing the amount of uncollected receivables from customers during a period.