Which of the Following Is an Example of a Capital

question 109

Multiple Choice

Which of the following is an example of a capital input?

• A)a computer
• B)a share of stock
• C)an hour of a worker's time
• D)$50,000

Recognize the lessor’s income recognition pattern for sales-type leases.

Examine the implications of sale and leaseback transactions on immediate gain recognition.

Understand the concept of incremental and differential costs.

Know that sunk costs are irrelevant to future decision-making.

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Definitions:

Actual Authority

The express and implied powers given to an agent by a principal, allowing the agent to act on behalf of the principal.

Conduct

The manner in which a person behaves, especially in a particular place or situation.

Unauthorized Contract

An agreement made by a person who does not have the legal authority to do so on behalf of a party.

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.