To be considered an investment asset,an item
A)must be purchased for the specific purpose of providing additional income or increasing net worth.
B)must be a stock,a bond,or a savings account.
C)must be intangible.
D)must be owned free and unencumbered by a loan.

Question

Quizplus · Accepted Answer

An investment asset is typically defined as an item that is purchased with the intention of providing additional income or increasing net worth. This can include a variety of tangible and intangible assets, such as stocks, real estate, and precious metals. The key characteristic of an investment asset is that it is acquired with the goal of generating a return on investment. Therefore, option A best describes the criteria for an investment asset. Options B, C, and D are incorrect as they either limit the definition of an investment asset or do not accurately describe its purpose.

To Be Considered an Investment Asset,an Item