Categories Are ________ If Each Response Fits into One and Only

question 77

Multiple Choice

Categories are ________ if each response fits into one and only one category code.

• A) dependent
• B) mutually inclusive
• C) collectively exhaustive
• D) mutually exclusive
• E) uniform

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Definitions:

Section 1221 Asset

Properties or assets, as defined by the IRS, that are used in a trade or business and are held for more than one year.

Rental Property

Real estate property leased or rented out to tenants, generating income for the owner.

Business Inventory

Items that are held by a business for the purpose of sale or production.

Trade or Business

An activity conducted for the purpose of earning income from selling goods or services, characterized by regularity and continuity.