In 2010 You Purchased a Share of Stock for $125

question 58

True/False

In 2010 you purchased a share of stock for $125 and you sold it this year for $250.Legally,you don't need to pay any taxes on this transaction.

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Definitions:

Normal Balance

The aspect of an account, be it on the debit or credit side, designated for recording increments to the account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Adjusting Entry

An entry made in the accounts to reflect a correct amount of revenues and expenses for a specific period before preparing the financial statements.

Consulting Fees-Revenue

Income earned by an individual or a company for providing professional advice or services to clients.