A Capital Gains Tax Is a Tax on The

question 103

Multiple Choice

A capital gains tax is a tax on the:

• A) earnings of individuals and corporations.
• B) income earned by buying assets and selling them at a higher price.
• C) wages paid to an employee.
• D) value of a good or service being purchased.

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Definitions:

Exchange Gain/Loss

The gain or loss resulting from the fluctuation in exchange rates affecting the value of foreign currency transactions.

Functional Currency

The primary currency used by a business or organization for accounting purposes, reflecting the economic context of its operations.

Functional Currency

The primary currency used by a business or entity in its financial operations and reporting.

Current Monetary Assets

Assets held by a company that are in the form of cash or can be easily converted into cash within a short period, typically one year.