For Purposes of Sec

question 94

Multiple Choice

For purposes of Sec. 751, inventory includes all of the following except

• A)capital assets or 1231 property.
• B)items held for sale in the ordinary course of business.
• C)accounts receivable.
• D)All of the above are inventory per Sec. 751.

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Definitions:

Subscription

An agreement to purchase a product or service on a recurring basis or to receive regular deliveries or access to content.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.

Daily Wages

The amount of money that a worker earns for one day of labor.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.