Identify Which of the Following Statements Is False

question 21

Multiple Choice

Identify which of the following statements is false.

• A)Earned income is excludable from gross income only if it is foreign-source income.
• B)Taxable pensions and annuities are excluded from the definition of earned income when computing the foreign-earned income exclusion.
• C)An individual meets the bona fide resident test by establishing a home in a foreign country for 330 days.
• D)All of the above are false.

---

Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update certain accounts and report revenues and expenses in the appropriate period.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life.

Supplies Expense

An accounting term referring to the cost of supplies consumed or used by a business within a reporting period.

Worksheet

An accounting tool used for planning and preparing financial statements, typically including trial balance, adjusting entries, adjusted trial balance, and financial statements.