Asked by Andrea Madison on Jul 13, 2024
Verified
Capital refers to funds acquired for use over long periods of time for the purpose of:
A) acquiring long-lived assets such as machinery, land, buildings, etc.
B) getting businesses started.
C) financing permanent working capital.
D) All of the above
Acquired Funds
Funds obtained through various means, including borrowing, earnings, or investment, by an entity for operational or investment purposes.
Long-Lived Assets
Assets that are expected to provide economic benefits over a period longer than one year, such as buildings, machinery, and land.
- Identify the components of capital and their respective costs.
Verified Answer
PN
Putri novaliza NovalizaJul 16, 2024
Final Answer :
D
Explanation :
Capital can be used for all of the purposes listed, including acquiring long-lived assets, starting businesses, and financing permanent working capital.
Learning Objectives
- Identify the components of capital and their respective costs.