Which of the Following Is True Regarding Tax-Advantaged Assets

question 52

Multiple Choice

Which of the following is true regarding tax-advantaged assets?

• A) They are typically subject to excise taxes to account for their low explicit taxes
• B) A corporate bond is typically considered a tax-advantaged asset
• C) They are often subject to implicit taxes
• D) A corporate bond is typically considered a tax-advantaged asset and they are often subject to implicit taxes are correct but not they are typically subject to excise taxes to account for their low explicit taxes
• E) None of these

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Definitions:

Contra Asset

An account on a company's balance sheet that offsets against an asset account on the same balance sheet.

Miscellaneous Revenue

Income from sources other than the main business activities, such as rental income or interest income.

Cash Over And Short

An account that records the discrepancies between the actual cash received and the expected amount.

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.