McqMate
| Q. |
What is meant by 'Capital Gain'? |
| A. | Part of profits added to the capital |
| B. | Appreciation in the money value of assets |
| C. | Additions to the capital invested in a business |
| D. | None of these |
| Answer» B. Appreciation in the money value of assets | |
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Explanation: A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price. Capital gains may refer to "investment income" that arises in relation to real assets. In other words, a capital gain represents an appreciation in value accruing over a prescribed period of time on the asset. |
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