Which of the Following Statements with Respect to a Like-Kind

question 37

Multiple Choice

Which of the following statements with respect to a like-kind exchange is false?

• A)Property of one class must be exchanged for property of the same class.
• B)An exchange of inventory does not qualify as a like-kind exchange.
• C)Personal property must be exchanged for personal property.
• D)Sale of property and subsequent purchase of like-kind property will always qualify as a like-kind exchange.

---

Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Inventory

The total amount of goods and materials held by a company awaiting sale or use in production.

Accounts Receivable

Funds that customers owe a business for products or services already delivered or utilized but not yet paid for.

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.