Net Capital gain is an item of income, while net capital loss is not an item of deduction. a.true b.false

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: What types of ordinary and statutory income do not constitute assessable income?

A: Ordinary Income is that income which is taxable at ordinary rates or earned from working. Like…

Q: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue

A: Revenue is the amount received from selling or transferring goods and services from the business to…

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…

A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…

Q: Except for _________, losses from the sources listed below are not regarded as capital losses.…

A: An capital loss is a loss that results from the decline in value of a capital asset, such as an…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Example of items that would be adjusted directly against equity, rather than being included as part…

Q: Leftover hypothesis of profit is relevant just when:    a. The expense of held income lower than…

A: The leftover hypothesis of Profit means remaining profit i.e. profit left over after paying all the…

Q: Estimated discount on property taxes is considered to be assets contra account .a FALSE .b TRUE

A: Property taxes are the amount of obligations or dues to the authorities for holding property of any…

Q: Loss on fire is included in the computation of net income.

A: Net Income: Gross revenue less cost of goods sold, selling, general and administrative expenditures,…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997?…

A: Section 6-5 of the ITAA 1997 shows that your assessable income includes income as stated to ordinary…

Q: What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital…

A: The question is related to Capital Gain head. Capital gain means any profit or gain arising out of…

Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

A: Other comprehensive income means those items of revenues and expenses that are not part of Profit…

Q: Which of the following is not included under other income? a. Rent received b. Commission received…

A: OTHER INCOME: IT IS THE INCOME THAT DOES NOT COME FROM THE FIRMS MAIN BUSINESS.

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Define capital gain (loss)

A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…

Q: ment plan. True or False: You only include non-income producing assets Ih your Petlir False O True

A: Non income producing assets are those which do not gives a regular income. These gives return in the…

Q: . Use the criteria of equity and efficiency in taxation to evaluate the idea of taxing capital gains…

A: Taxing capital gain: There are fives sources of income recognized by the tax authorities on which…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Following are the example of items that are adjusted directly against equity, rather than being…

Q: Examples of items that are adjusted directly against equit rather than being included as part opf…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: 1. The value deducted from the revenue stream, which usually has no obligation toward covering…

A: Disclaimer: Since you have asked multiple questions we have answer first question please upload…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: The term ‘Operating Profit’ means profit before _____ a. Interest b. Tax c. Interest and tax d.…

A: Formula: operating profit = Sales - Cost of goods sold - Operating expenses - Depreciation.

Q: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: When an expenditure  is made and it is treated as an expense but should have been capitalized, the…

A: The expenses that are paid in advance are known as prepaid expenses.

Q: Net capital gain means the excess of the gains from sales of exchanges of ordinary assets over…

A:

Q: 1. A statement of comprehensive income includes Net income and Comprehensive income. True False

A: The statement of comprehensive income summarizes both standard net income and other comprehensive…

Q: What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ of…

A: Introduction:- Depreciation is an expense. Which is charged on fixed assets over useful life of the…

Q: Ordinary gains includes capital gains such as those from the performance of services whehter…

A: Ordinary gains and capital gains are the two kinds of accounting profit which arises from business…

Q: When a business calculates taxable income from gross income, which ofthe following is true? a.…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: unlike depreciation and retained earnings, the interest expense does not have to directly tie on any…

A: Depreciation is shown both under the balance sheet and the income statement. Retained earnings are…

Q: Is Property Dividends qualify as Revenue?

A: Property dividends refer to the dividend which stands as an alternate to dividends payable in cash…

Q: Define each of the following terms: i. Capital gain or loss; tax loss carryback and carryforward

A: The capital gain or loss is computed as the difference in the sale price and purchase price of an…

Q: According to our authors, what is an unrealized gain and unrealized loss?

A: In a general view gains and losses are the outcomes of investing which are inevitable. A gain or…

Q: provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: transaction costs

A: All financial assets are initially measured at fair value plus transaction costs, except C :- Fair…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Section 1221(a) of the Internal Revenue Code defines what:     a. is a capital asset.     b. is…

A: Internal Revenue Code (IRC): IRC is the source of tax laws, the legislative authority and is…

Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…

A: SOLUTION- DRAWINGS-  IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…