Which of the following is not considered capital? (2023)

Which of the following can not be considered as capital?

The answer is C.

Based on the list given, the furniture in the president's office is not considered as capital. Capital can be viewed as long term assets that are used to generate revenues in the future.

It is useful to differentiate between five kinds of capital: financial, natural, produced, human, and social. All are stocks that have the capacity to produce flows of economically desirable outputs. The maintenance of all five kinds of capital is essential for the sustainability of economic development.

Capital is a broad term for anything that gives its owner value or advantage, like a factory and its equipment, intellectual property like patents, or a company's or person's financial assets. Even though money itself can be called capital, the word is usually used to describe money used to make things or invest.

Accrual principle is not followed in capital budgeting.

Answer :- Average rate of return method is based on cash flows. 5. Which of the following is not a capital budgeting decision? Inventory control.

The seven community capitals are natural, cultural, human, social, political, financial, and built. Natural Capital includes all natural aspects of community. Assets of clean water, clean air, wildlife, parks, lakes, good soil, landscape – all are examples of natural capital.

Key Takeaways

The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.

Some of the top ways to raise capital are through angel investors, venture capitalists, government grants, and small business loans.

In business and economics, the two most common types of capital are financial and human.

What are the 8 types of capital?

The eight capitals: intellectual, financial, natural, cultural, built, political, individual and social.

1.2 The capitals identified by the IIRC are: financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital, and natural capital. Together they represent stores of value that are the basis of an organization's value creation.

The purchase of raw materials for inventory is not an example of a capital investment. This is explained by the fact that capital investment involves involves purchases of long-term or fixed assets like land, machinery, or buildings hence inventory is a current asset that is not considered in the capital investments.

Capital Budgeting Decisions are based on: Incremental Profit. Incremental Cash Flows. Incremental Assets.

Capital Budgeting is the process of making financial decisions regarding investing in long-term assets for a business.

Which of the following is not true for Capital Budgeting for a business? Explanation: The existing investment within a project is not considered as the sunk cost.

The correct option is ii. inventory level.

Therefore, Contributions into the business by the proprietor, loans taken from banks and amount received on issue of share capital are capital receipts.

Capital markets contain the bond market and the stock market, commonly known as the primary capital market and secondary capital market.

Explanation: Capital expenditure or capital expense is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Wages paid on the installation of machinery is treated as a capital expenditure.

What are the types of capital items?

Capital goods include buildings, machinery, equipment, vehicles, and tools. Capital goods are not finished goods, instead, they are used to make finished goods.

Examples of "capital "include machinery, tools, highways, and factories. Note that capital in economics does not mean not "money". When you hear someone say, "we need to raise enough capital (money) to start a new business". They are using a different definition of the term "capital".

The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.

a) Capital is man-made (artificial) b) It increases the productivity of resources c) Supply of capital is elastic. It can be produced in large quantity when its requirement increases. d) Capital is perishable as it can be destroyed. e) Capital is highly mobile.

Financial needs can be divided broadly into capital need and income needs. Capital needs are most often for a home, furnishings and a car. Income needs is the amount of money each party requires to live on each month.

The most important function of the capital is to promote the economic growth of the country. For the satisfactory development of the country, adequate funds are very essential.

What are 2 types of capital?

In business and economics, the two most common types of capital are financial and human.

Cash, including money in bank accounts and undeposited checks from customers. Marketable securities, such as U.S. Treasury bills and money market funds. Short-term investments a company intends to sell within one year. Accounts receivable, minus any allowances for accounts that are unlikely to be paid.