All of the Following Are Basic Categories of Financial Assets

question 82

Multiple Choice

All of the following are basic categories of financial assets except

• A) Money market securities.
• B) Stocks (equity).
• C) Deeds (titles).
• D) Bonds (debt).
• E) All of the above represent financial assets.

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Definitions:

Cash-Basis Taxpayer

An individual or entity that reports income and deductions in the year that cash is received or paid, respectively.

Account Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Bad Debt

A financial loss that occurs when a debtor fails to repay a loan or credit extended, considered non-recoverable and potentially eligible for a tax deduction.

Professional Gambler

Professional Gambler is an individual for whom gambling is considered a trade or business, allowing them to deduct losses and expenses related to their gambling activities as business expenses.