During 2012, Greta Gibson Recognizes a $2,000 Short-Term Capital Gain

question 60

Multiple Choice

During 2012, Greta Gibson recognizes a $2,000 short-term capital gain, a $6,000 short-term capital loss, a $20,000 long-term capital gain, and a $7,000 long-term capital loss. Greta's net capital gain is:

• A) $9,000.
• B) $13,000.
• C) $14,000.
• D) $16,000.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Cost of Goods Sold

The direct expenses involved in producing the products a company sells, which cover both materials and labor.

Cash Cycle

The duration of time a company takes to convert its inventory and other resource inputs into cash flows from sales.

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to evaluate the efficiency of inventory management.