INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 103

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-If you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] policy.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Constructive Receipt

The tax principle that income is taxed when it is actually or constructively received, not necessarily when it is earned.

Control

The ability or authority to guide or manage operations, decisions, and policies of a business or project.

Income

Earnings received by an individual or entity, including wages, salaries, investments, and other forms of compensation, which are subject to tax.

Schedule B

A section of IRS tax forms for reporting interest and dividend income.