Match Each of the Following Statements with the Terms Below

question 98

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-Schedules M-1 or M-3

• A)Adjusted basis of each partnership asset.
• B)Operating expenses incurred after entity is formed but before it begins doing business.
• C)Each partner's basis in the partnership.
• D)Reconciles book income to "taxable income."
• E)Tax accounting election made by partnership.
• F)Tax accounting calculation made by partner.
• G)Tax accounting election made by partner.
• H)Does not include liabilities.
• I)Designed to prevent excessive deferral of taxation of partnership income.
• J)Amount that may be received by partner for performance of services for the partnership.
• K)Computation that determines the way recourse debt is shared.
• L)Will eventually be allocated to partner making tax-free property contribution to partnership.
• M)Partner's share of partnership items.
• N)Must generally be satisfied by any allocation to the partners.
• O)Justification for a tax year other than the required taxable year.
• P)No correct match is provided.

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Definitions:

Risk-free Asset

An investment with a guaranteed return and no risk of loss, often represented by government bonds.

Beta

An evaluation of the consistent risk or volatility of a security or a portfolio relative to the overall market.

Portfolio Beta

A measure of the overall risk of a portfolio of investments, comparative to the market as a whole.

Risk-free Asset

An asset which is presumed to have a guaranteed return with no risk of financial loss.