Match Each Statement with the Correct Term Below

question 32

Multiple Choice

Match each statement with the correct term below.
-Section 179

• A)Trucks, and passenger automobiles.
• B)Used to recover the investment in intangible assets.
• C)Used to recover the investment in long-lived tangible business-use assets.
• D)An attempt to stimulate capital investment by small businesses.
• E)Used to recover the investment in assets that waste away through extraction.

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Definitions:

Total Indebtedness

The sum of a company’s short-term and long-term liabilities.

Financial Covenant

A clause in a loan agreement that requires the borrower to meet certain financial conditions, often used by lenders to protect their investments.

Net Worth

The total value of assets owned by an individual or corporation, minus any liabilities, indicating financial health.

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.