Match Each Statement with the Correct Term Below

question 79

Multiple Choice

Match each statement with the correct term below.
-Qualified Small Business stock gain

• A)Stocks, bonds, options.
• B)Depreciable real property.
• C)All or part of any gain on sale is excluded.
• D)Taxed at a maximum rate of 25%.
• E)Gain or loss on the sale of artwork.
• F)Depreciable tangible personal property.
• G)Subject to full recapture as ordinary income of all depreciation taken.
• H)Gain on real property attributable to excess depreciation is ordinary income.

---

Definitions:

Closing Entries

Closing entries are journaled at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, thereby resetting the temporary accounts for the next period.

Natural Resources

Natural resources are raw materials that are derived from the environment, such as minerals, forests, water, and fertile land, which can be used for economic gain.

Periodic Inventory System

An inventory system that updates inventory balance and cost of goods sold at the end of an accounting period, not continuously.

Economic Entity Assumption

An accounting principle that states a company and its owner(s) are separate entities for financial reporting purposes.