Child Support Is

question 53

Multiple Choice

Child support is

• A)deductible by both the payor and the payee.
• B)deductible by the payor and included in income by the payee.
• C)included in income by the payor and deducted by the payee.
• D)an item which does not affect the payor's or the payee's tax reporting.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.

Accrued Expense

Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.