Which of These Is Not a Part of Equity

question 55

Multiple Choice

Which of these is not a part of equity?

• A)Income
• B)Expenses
• C)Cash
• D)General reserve

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Definitions:

Deductible Loss

A financial loss that can be subtracted from income for tax purposes, reducing the taxable income and thus the tax liability.

IRS Method

Refers to specific guidelines and procedures established by the Internal Revenue Service for calculating taxes, deductions, and other tax-related matters.

Mortgage Interest

The interest charged on a loan used to purchase a property, which is often tax-deductible for homeowners.

Vacation Home Properties

Real estate properties owned for personal use as a vacation getaway, which may also generate rental income.