Since It Does Not Have to Be Converted into Anything

question 67

Multiple Choice

Since it does not have to be converted into anything else to make purchases,________ is the most liquid asset.

• A)money
• B)stock
• C)artwork
• D)gold

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Definitions:

Automatic Extension

An extension of time granted by the IRS for filing tax returns without needing to file a request form.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Return

A document containing details about an individual's or entity's income, deductions, and tax liabilities filed with the tax authorities.

Basis

The initial value of an asset for tax purposes, used to calculate depreciation, amortization, and determines the gain or loss on the asset's sale.