Section 121 (Exclusion of Gain on Sale of Principal Residence)applies

question 131

True/False

Section 121 (exclusion of gain on sale of principal residence)applies only to gains and does not cover losses.

---

Definitions:

Net Cash

The amount of cash available after accounting for cash inflows and outflows over a period.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Prepaid Expenses

Expenses paid in advance for goods or services, which are recognized as assets until they are consumed or the term of use expires.