Which of the following is an example of a capital asset?

A capital asset refers to property that is owned for personal or investment purposes and is expected to provide long-term economic benefits. Home furnishings qualify as capital assets because they are physical items that a person acquires for use in their personal residence. They can appreciate in value over time, or at the very least, contribute to the value of the home itself.

In contrast, personal expenses, utility bills, and salaries do not fit the definition of capital assets. Personal expenses are ongoing costs incurred by an individual, such as food or clothing, which do not provide long-term value. Utility bills are regular payments for services like electricity or water, and they are considered expenses rather than assets. Salaries represent income earned from work or services provided and are not assets owned by the individual. Therefore, home furnishings stand out as the only option that represents an asset as defined within the context of capital assets.