Jana Reports the Following Income and Loss

question 73

Multiple Choice

Jana reports the following income and loss:

Activities A,B,and C are all passive activities.
Based on this information,Jana will recognize

• A) adjusted gross income of $80,000.
• B) salary of $120,000 and deductible net losses of $40,000.
• C) salary of $120,000, passive income of $60,000, and passive loss carryovers of $100,000.
• D) salary of $120,000 and net passive losses of $40,000 that will be carried over.

Note the role and challenges of small businesses and entrepreneurs in the economy.

Recognize the dynamic and fast-paced nature of managerial work and the necessity for flexibility, teamwork, and speed in achieving strategic and operational goals.

Understanding the balance between effectiveness and efficiency in management.

Recognizing the importance of organizational objectives in guiding management processes.

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Definitions:

Debt-To-Equity Ratio

A measure that compares a company's total liabilities to its shareholder equity, used to evaluate financial leverage.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and receivables), indicating liquidity without relying on inventory sales.

Book Value Per Share

A metric calculated by dividing a company's equity available to common shareholders by the number of outstanding shares.

Purchasing Inventory

Purchasing inventory involves the acquisition of raw materials, work-in-progress, or finished goods to ensure that production can meet demand without unnecessary delay or stockouts.