Which of the Following Can Be Categorized as a Capital

question 28

Multiple Choice

Which of the following can be categorized as a capital item purchased by organizational buyers?

• A)Office supplies
• B)Copy papers
• C)Production plant
• D)Machine lubricants

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the market.

Book Value

The value of a company or asset according to its financial statements, calculated by taking the total assets minus the liabilities and intangible assets.

Mortgage Payable

A liability account on the balance sheet representing the amount owed to a lender for property purchased.

Market Value

The present-day trading price for assets or services available in the open market.