This Year Kevin Provided Services to Several Clients, Each of Whom

question 98

Multiple Choice

This year Kevin provided services to several clients, each of whom paid with different types of property. Which of the following payments is not included in Kevin's gross income?

• A)Cash
• B)Shares of stock listed on the New York Stock Exchange.
• C)A used car
• D)Gold coins
• E)All of these are included in gross income

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Definitions:

Securities Holdings

All the investments held by an individual or institution, including stocks, bonds, mutual funds, and other types of securities.

Reverse Repurchase Agreement

A financial transaction in which one party sells an asset to another party with a promise to repurchase it at a later date at an agreed upon price.

Repurchase Agreement

A repurchase agreement, or repo, is a short-term borrowing for dealers in government securities wherein the dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.

T-Bills

Short-term government securities with maturity periods typically less than one year, considered risk-free investments.