Which of the Following Statements Regarding Sec

question 646

Multiple Choice

Which of the following statements regarding Sec. 179 is true?

• A) If a taxpayer places in service property costing more than the Sec. 179 ceiling on the amount of property placed in service, the excess can be carried over to subsequent years.
• B) Sec. 179 carryforwards expire after five years.
• C) Amounts of the Sec. 179 election in excess of the taxable income limitation are carried forward.
• D) All of the above statements are true.

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Definitions:

NSF

An acronym for "Non-Sufficient Funds," indicating that an account does not have enough money to cover a presented check or withdrawal.

Cash Management

The process of collecting, managing, and investing a company's cash flows in a way that maximizes liquidity and profitability.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.

Bank Overdraft

A facility allowing a bank account holder to withdraw more money than is actually available in their account, typically subject to interest charges.