Which of the Following Statements Regarding Qualified Tuition Programs Is

question 81

Multiple Choice

Which of the following statements regarding qualified tuition programs is incorrect?

• A)Distributions from income earned by a qualified tuition program are tax-free if used for qualified higher education expenses.
• B)Distributions of income are taxed to the donor if the proceeds are not used for higher education expenses.
• C)A qualified tuition program may be established by parents or grandparents.
• D)Contributions to a qualified tuition program are distributed tax-free.

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Definitions:

Balance Sheet

A statement of finance that shows a corporation's assets, liabilities, and owner's equity at a specific moment.

Balance Sheet

An accounting record that outlines a business's assets, obligations, and equity of shareholders at a designated time.

Total Asset Turnover Ratio

An indicator assessing the capability of a firm to turn its assets into sales revenue efficiently.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.