When you can sell an asset for more than you paid for it, you have earned a
A) capital gain.
B) dividend.
C) retained earning.
D) perpetuity asset.

Question

Quizplus · Accepted Answer

When an asset is sold for more than its purchase price, it results in a capital gain, which is the profit earned from the difference between the selling price and the purchase price. Dividends are payments made to shareholders of a company out of its profits, while retained earnings are the portion of a company's profits that are kept within the company for future use. Perpetuity assets are assets that provide a fixed stream of income indefinitely, and are not related to capital gains.

When You Can Sell an Asset for More Than You