Which of the following is excluded from gross income? a.Scholarships for tuition b.Prizes c.Rental income d.Hobby income e.All of these choices are included in gross income.

Q: Regarding the taxation of life insurance policies, which of the following is NOT true? Select one:…

A: Life insurance is referred to as a contract between you and the insurance company. In general,…

Q: Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)? A. EITC…

A: Answer:-  Earned Income Tax Credit (EITC) meaning:- The Earned Tax Credit (EITC), is a kind of tax…

Q: Timely payment of taxes comes under objective of financial managment a. Social Objectives b.…

A: timely payment of taxes comes under social objective of financial management.

Q: What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer?

A: VAT Taxpayer: In the European Community, the Value Added Tax, or VAT, is a wide ranging taxation…

Q: 1. Indicate whether the following expenditures are trade or business deductions (T), production of…

A: AGI stands for Adjusted Gross Income. AGI is the difference between gross income & adjustments…

Q: 7. Schedular system of taxation means: all types of income are added together to arrive at gross…

A: Taxation refers to the tax rate which is imposed by the authorities of government on the income…

Q: Which of the following refers to the elements of Comprehensive Income?  a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: Which of the following is not an income for income tax purposes?

A: Assuming the question related to tax in Phillipines ---…

Q: Taxable income is ????????????????? why not gross income less deductions????

A: Taxable Income is income on which tax is payable by the taxpayer. It can be calculated as follow…

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: In an estate, which of the following is charged to income rather than to principal? Choose the…

A: Option c. Property taxes are charged to the income rather than principal.

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Tax is a charge which is paid by the taxpayer. The percentage tax is the tax which is calculated on…

Q: , whereby a taxpayer deducts the total amount of money spent on various expenses, such as gifts to…

A: Tax refers to the percentile form of the obligation imposed by the government over the income earned…

Q: For an accrual basis taxpayer, which of the following statements is TRUE  regarding prepaid income?…

A: In accrual basis of accounting, when any amount is received against a service which has not yet been…

Q: Explain the conditions under which the following may be taxable:

A: Tax is the amount which is paid on the taxable portion of the income earned by the person during the…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: What is the basis of taxation of a Resident Citizen? Group of answer choices Gross Income less…

A: Basis is taxation means is what gets taxed.

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: The following are generally non-taxable income, except:  A. Stock Dividend B. Compensation for…

A: The person would not be taxed if the source of income is a stock dividend, receipt from farming, or…

Q: Which of the following formulas can be used to represent targeted pretax profit, πB, as a function…

A: option 1 is correct  πB = πA/(1 - t)   πB = Pretax target profit   πA=Post tax profit  t=Tax rate

Q: EBIT is Select one: O a. equity before tax and interest O b. gross profit O c. net profit O d. EBT…

A: EBIT means earnings before interest and taxes. This is an important element of income statement of…

Q: You pay personal taxes on your calculated _________________ income. Group of answer choices…

A: According to the provision of income tax act, the assesse is liable to pay tax based on the taxable…

Q: A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods…

A: Taxable income is the value at which the tax is calculated by the company.It is calculated by…

Q: Topic: Income Taxation Active incom

A: There are two types of income active and passive income.

Q: Which of the following may be ordinary income? Salary Government pension Lottery…

A: Income which come from regular day to day business operations known as ordinary Income

Q: Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net…

A: The estate tax is computed after deducting the exemption value from the total value of the…

Q: A property owner after payment of taxes received tax abetment due to his commitments to a local…

A: The tax abatement could not be treated as uncollectible property taxes if it is provided to a…

Q: What is the real return?   Multiple Choice   The after-tax return on assets.   The pre-tax return…

A: Rate of return is the percentage of profit that is earned on an investment.

Q: Does "commission income" go onto the Statement of Comprehensive income? We usually capture interest…

A: Net profit means the difference between the income and expenses. Financial statement means the…

Q: Which travel expenses are deductible and which ones are not? Provide reasons for both deductible and…

A: The travel expenses are costs usually related to the purpose of traveling for business-related…

Q: MC: Topic: Income Taxation Which of the following income is subject to regular income tax? *…

A: Income tax is charged by the government on the income earned by the tax payer for the development…

Q: Explain the 3 Classification of individuals based on type of earnings: a. Pure compensation income…

A: "Since you have asked multiple question we will solve the first question for you.  If you want any…

Q: Explain why you would prefer to have an expense labeled as an adjustment to income instead of being…

A: There are two ways in which you can reduce the tax liability. The first one is by reducing the…

Q: What is meant by the following terms? You should provide an example of each to support your answer.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: hen the temporary differences result to financial income higher than taxable income, they are known…

A: Solution: False. This is because he temporary differences result to financial income higher than…

Q: Personal expenses are deductions:     a. for AGI     b. always deductible.     c. Deductions…

A: Personal expenses are always not deductible. Personal expenses are incurred for personal purpose…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Gross receipts are defined as all income, regardless of form, collected or accumulated (in…

Q: Which of the following cannot claim Input VAT as a deduction against the Output VAT when computing…

A: Solution: "Non-VAT Taxpayers" cannot claim Input VAT as a deduction against the Output VAT when…

Q: A sales tax taxes your Oa. consumption financed by income. O b.income based on ability to pay. Oc…

A: Solution:- Sales Tax:- A Sales tax is a consumption tax imposed by the government on the sale of…

Q: For purposes of Optional Standard Deduction of an individual, the optional Standard Deduction of…

A: Answer: Optional standard deduction is option of deduction that is given for corporate and…

Q: The income tax treatment of damages received from personal physical injuries is an application of…

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: Which of the following statements about “RESP’s are true?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : RRSP…

Q: How to convert and income statement's information to express the income statement in common-size…

A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.