I believe the answer is: the increased value of an asset
In a capital appreciation, the value of assets that we purchased in the past is increased due to some circumstances, (could be because we make a direct modification to the asset or the market valuation of the asset is increased). Example of this is when we bought a piece of land 10 years ago and the value is doubled today.
Option A is the correct answer.
The increased value of an asset is known as capital appreciation.
Further explanation:
Capital appreciation:
Capital appreciation refers to the rise in the value of the asset like rise in the value of land or fixed assets or any asset.
Justification for the correct and incorrect answer:
A.
The increased value of an asset: This is correct.
Capital appreciation refers to the increased value of an asset.
B.
The ability to make a profit from owning stock: This is incorrect.
Capital appreciation does not refer to the ability to make a profit from owning stock. Profit from owning stock can be gained from capital payments and the dividend.
C.
The distribution of earnings to shareholders: This is incorrect.
Capital appreciation is increase in the value of asset, and distribution of earnings to shareholders refers to the distribution of the dividend to the shareholders.
D.
The profitable sale of shares: This is incorrect.
The profit sale of shares refers to the sale of the shares and capital appreciation refers to the increase in the value of assets.
Thus,the increased value of an asset is known as capital appreciation.
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Answer details:
Grade: High School
Subject: Accounting
Chapter: Property, plant, and equipment
Keywords: Capital appreciation refers to the increased value of an asset. the ability to make a profit from owning stock. the distribution of earnings to shareholders. the profitable sale of shares.
