Capital assets do not include inventory, depreciable property, copyrights, accounts receivable, or literary, musical or artistic compositions.

Question

Quizplus · Accepted Answer

This statement is true. Capital assets refer to long-term assets that are held for investment or productive purposes, such as buildings, land, and equipment. They do not include inventory, which is held for sale in the ordinary course of business, or depreciable property, which is subject to depreciation expenses over time. Additionally, intangible assets such as copyrights, accounts receivable, or literary, musical, or artistic compositions are not considered capital assets.

Capital Assets Do Not Include Inventory, Depreciable Property, Copyrights, Accounts