Marvin Is in the Business of Song Writing

question 98

Multiple Choice

Marvin is in the business of song writing.He writes jingles for web ads. He writes a song and sells it for a lump sum. He has:

• A)Sold a capital asset.
• B)Sold an ordinary asset.
• C)No gain or loss.
• D)An ordinary gain.
• E)b.and d.

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Definitions:

Credit Memos

Documents issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under previous transactions.

Bank Account Balance

The amount of money held in a bank account at any given moment.

Internal Control

Encompasses the procedures and policies implemented by an organization to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.

Outstanding Checks

Checks issued by a company that have been recorded in its books but have not yet been cashed by the recipient.