Match Each Term with the Correct Statement Below

question 127

Multiple Choice

Match each term with the correct statement below.
-Increases in wealth and recoveries of capital that Congress has decided should not be subject to income tax.

• A)Ad valorem tax
• B)Deduction
• C)Excise tax
• D)Exclusion
• E)Expense
• F)Gain
• G)Loss
• H)Ordinary income
• I)Pay-as-you-go concept
• J)Personal property
• K)Real property
• L)Self-assessment
• M)Standard deduction
• N)Statute of limitations
• O)Tax base
• P)Tax credit

---

Definitions:

LIFO Method

"Last In, First Out," an inventory valuation method where the most recently purchased items are the first to be sold, affecting the cost of goods sold and inventory valuation.

FIFO Method

"First In, First Out," an accounting method for valuing inventory, where the earliest items acquired are the first to be sold.

Inventory Valuation

The method used to assess the cost or market value of inventories held by a business for the purpose of financial reporting.

Interim Financial Reporting

Reporting of a company's financial performance and position for a period shorter than its fiscal year, often quarterly.