For an Individual, If Net Long-Term Capital Gains Are Greater

question 39

Multiple Choice

For an individual, if net long-term capital gains are greater than net short-term capital losses, the net amount is

• A) not taxable.
• B) taxed at 15%.
• C) taxed at 31%.
• D) taxed at a maximum of 28%.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable over a period.

Inventory Turnover

A ratio that shows how often a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock levels.

Capital Structure

The combination of a business's long-term loans, particular short-term borrowings, common stock, and preferred stock, employed to fund its general activities and expansion.

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.