The Purpose of the "Excess Business Loss" Rules Are to Limit

question 52

True/False

The purpose of the "excess business loss" rules are to limit the amount of non-business income

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Definitions:

General Ledger

A complete record of all financial transactions made over the life of a company.

Asset Accounts

Accounts on a company's balance sheet that represent valuable resources controlled by the company and that have future economic value.

Liability Accounts

Accounts on a company's balance sheet that represent what the company owes to others, such as loans, accounts payable, mortgages, and accrued expenses.

Journal Entries

The recording of financial transactions into the accounting records, specifying the accounts affected by those transactions.