Please help with an assignment by answering the following:
- What are capital assets?
- Identify some of the usual capital assets that an individual or business may own.
** Please see the attached file for the complete solution response **
Capital assets are a type of assets that are utilized by the company to attain the objective of profitability until in the long run. They are not intended to be sold within a short period of time or during the regular course of the company's operations. They are normally sold in the case of company's bankruptcy in order to meet its financial commitments or during a period where there are changes in the normal course of the company's business. For a manufacturing firm, property, plant, buildings, machinery and equipment are usual examples of capital assets. They ...
This solution identifies and some types of capital assets that an individual may own as well as defining capital assets as an accounting concept. Additionally, this solution provides five reference sources for further research on the topic.