All of the Following Items Are Generally Excluded from Income

question 91

Multiple Choice

All of the following items are generally excluded from income except

• A)child support payments.
• B)interest on corporate bonds.
• C)interest on state and local government bonds.
• D)life insurance proceeds paid by reason of death.

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Definitions:

Trial Balance

A list of all general ledger accounts and their balances at a particular time, ensuring that debits equal credits in the double-entry accounting system.

Normal Balances

The side (debit or credit) of an account that is expected to have a higher balance given the account type's role in accounting.

Ledger

A book or collection of financial accounts in which the two-fold effect of transactions are recorded.