Which of the following items would be considered a capital asset?

Question

Quizplus · Accepted Answer

A capital asset is a long-term asset that will be used in the business for more than one year. The construction of a new store building is a long-term asset that will likely be used for more than one year and, therefore, is considered a capital asset. The other options (purchase of office supplies, payment for advertising, donation of money) are not capital assets as they are either short-term assets or do not represent a physical asset that could be used for more than one year.

Which of the Following Items Would Be Considered a Capital