Which of the Following Would Not Be Included in the Netting

question 82

Multiple Choice

Which of the following would not be included in the netting of § 1231 gains and losses?

• A) Personal use property net casualty loss.
• B) Section 1231 loss.
• C) Section 1231 gain.
• D) All of the above.
• E) b. and c.

---

Definitions:

Adjusting Entries

Entries in accounting made at the period's end to assign earnings and costs to their respective actual periods.

Income Statement Accounts

Accounts found on the income statement, which report a company’s financial performance over a specific period, including revenues, expenses, gains, and losses.

Temporary Accounts

Accounts in accounting that are used to track transactions within a financial period, which are then transferred to permanent accounts at the end of the period.

Interest Expense

The cost incurred by an entity for borrowed funds, which may include the cost of bonds, loans, convertible debt, and lines of credit.