Ahmad Owns Four Activities

question 87

Multiple Choice

Ahmad owns four activities.He participated for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D.Which of the following statements is correct?

• A)Activities A, B, C, and D are all significant participation activities.
• B)Activities A, B, and C are significant participation activities.
• C)Ahmad is a material participant with respect to Activities A, B, and C.
• D)Ahmad is a material participant with respect to Activities A, B, C, and D.
• E)None of these is correct.

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Definitions:

Temporary Investments

Short-term financial assets that can be easily converted into cash, typically within a year.

Cash Earn

The process of receiving money as a result of selling goods or services, investments, or other business activities that generate income.

Trade Credit

Credit extended by suppliers for the purchase of their goods and services.