All of the Following Items Are Excluded from Gross Income

question 83

Multiple Choice

All of the following items are excluded from gross income except

• A)working condition benefits.
• B)de minimis benefits.
• C)no additional cost benefits for employees.
• D)disability income from an employer-financed policy.

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Definitions:

Accrued Expense

An expense that has been incurred but not yet paid for.

Adjusting Entry

A journal entry made at the end of an accounting period to account for unrecorded transactions or to adjust incorrect entries.

Insurance

A contractual agreement that provides financial protection or reimbursement against losses to an individual or entity, in exchange for premiums paid.

Depreciation

The method of allocating the cost of a tangible or physical asset over its expected useful life to account for the decrease in its value over time.