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NEW QUESTION: 1
Which of the following actions will result in a taxable event for Tex Payor, an investor in the Invest4U
Mutual Fund?
I. Tex sells some of his shares of the fund at a profit.
II. Tex exchanges some of his shares in Invest4U for shares of another fund in the same family of funds.
III. Tex opts to reinvest any dividend or capital gain income he might have received in the fund to buy
additional shares of the fund in lieu of receiving a check from the fund.
A. I and III only
B. I only
C. I, II, and III
D. I and II only
Answer: C
Explanation:
All three selections describe actions that will result in a taxable event for Tex Payor as an
investor in the Invest4U Mutual Fund. If Tex sells some of his shares of the fund for a profit, he will earn
capital gains, which represent taxable income to him. When he exchanges some shares of Invest4U for
another, he is selling shares of Invest4U to reinvest in the other, and the sale of the shares in Invest4U will
result in either a capital gain or capital loss that he must report to the IRS. Even if Tex chooses to reinvest
the dividend or capital gain income for which Invest4U would have otherwise have sent him a check, he
has to pay taxes on the money as though he had received the check.
NEW QUESTION: 2
Section A (1 Mark)
Which portion of his property can a muslim normally be guest according to muslim personal law?
A. Fully
B. One Third
C. One Fourth
D. Half
Answer: B
NEW QUESTION: 3
Which statement is true about paying invoices?
A. An invoice can be paid only after the invoice accounting entries are created.
B. Both invoice accounting entries and payment accounting entries must be transferred to General Ledger at the same time if they are in the same calendar period.
C. Invoice accounting entries and payment accounting entries can be transferred at different times to General Ledger only if they are in different calendar periods.
D. An invoice can be paid without being validated.
E. An invoice must be validated before you can create invoice accounting entries.
Answer: E
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