Which of the Following Does Not Ultimately Result in a Capital

question 68

Multiple Choice

Which of the following does not ultimately result in a capital gain or loss?

• A)Sale of a personal use asset.
• B)Sale of inventory.
• C)Gain on equipment used in a trade or business and held for more than one year, if it is the only asset sale during the year.
• D)Sale of capital stock in another company.
• E)None of the choices are correct.

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Definitions:

Trial Balance

An accounting worksheet that sums up the balances from all ledgers into equal debit and credit column figures.

Related Accounts

Accounts in financial statements that are linked or associated with each other, often used to assess the financial health of a business.

Complete Unit

A single item that is ready for sale or use, containing all its necessary parts or components.

Standard Account Forms

Preset templates used for recording financial transactions and keeping track of financial information in accounting.