Which of the Following Qualifies as a Like-Kind Exchange of Property

question 32

Multiple Choice

Which of the following qualifies as a like-kind exchange of property?
I.Inventory for inventory.
II.Office equipment for a delivery van.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Explain the financial impacts and accounting treatments for repairs and improvements on asset values.

Understand the accounting procedures for asset disposals including gain or loss calculations.

Describe unique characteristics of natural resources in accounting, including their depletion.

Understand the importance of intangible assets and their amortization.

---

Definitions:

Costs

Expenses incurred by a business or individual in the production, maintenance, or purchase of goods and services.

Cost Of Goods Sold

The cost of merchandise sold recognized as an expense; the cost of finished goods available for sale minus the ending finished goods inventory.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Conversion Costs

The sum of direct labor costs and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.