Which of the following is typically not a characteristic of capital assets?

Capital assets are typically long-term assets used in the operations of a business and have specific characteristics that align with their role in the financial statements. One key characteristic is that capital assets have a useful life of more than one year, meaning they provide value over multiple accounting periods.

Furthermore, capital assets are depreciated over their useful life, which helps to match the asset's cost with the revenue it generates over time. This process of depreciation highlights the wear and tear or obsolescence that the asset may experience as it is used in operations.

In contrast to these characteristics, capital assets are not intended for sale within the normal operating cycle of a business. Assets sold within this cycle are generally classified as current assets, not capital assets, since they are expected to be converted into cash or consumed within one year or the operating cycle, whichever is longer.

By understanding these traits, it becomes clear why and how capital assets function in a business’s financial framework.