Loan Proceeds Are Taxable in the Year Received in Cash

question 36

True/False

Loan proceeds are taxable in the year received in cash.

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Definitions:

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operational performance.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Financial Capital

Financial capital involves funds provided by lenders and investors to businesses to purchase real capital equipment for producing goods/services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering insight into its financial position.