Which of the following items is part of a firm's financial capital as distinct from its real capital?
A)inventory of goods valued at $1 000 000
B)a $500 000 balance in a bank account
C)a new bulldozer
D)a fleet of delivery trucks
E)a network of personal computers

Question

Quizplus · Accepted Answer

Financial capital refers to the money or funds a firm has available for investment or operation purposes. A bank balance is a form of financial capital as it represents available funds. The other options are all forms of real capital as they are tangible assets used in the production of goods or services.

Which of the Following Items Is Part of a Firm's