Which of the Following Assets Held by a Cash Basis

question 111

Multiple Choice

Which of the following assets held by a cash basis accounting firm is a § 1231 asset?

• A) An account receivable from a client.
• B) A desk used in the business and held more than one year.
• C) An investment in Orange Company common stock.
• D) A computer used in the business, held more than one year, but fully depreciated under § 179 when acquired.
• E) b. and d.

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Definitions:

U.S. Constitution

The supreme law of the United States that outlines the national frame of government and the fundamental rights of its citizens.

Necessary and Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws deemed necessary and proper for executing its enumerated powers.

Full Faith and Credit Clause

A constitutional mandate requiring states to recognize and respect the public records, judicial proceedings, and legislative acts of other states.

Brady Handgun Violence Prevention Act

Federal legislation that requires background checks on individuals before a firearm purchase to prevent firearms sales to prohibited buyers.