Dividends on Life Insurance Policies Are Generally Excludible Income Because

question 26

True/False

Dividends on life insurance policies are generally excludible income because they are considered a return of premium.

---

Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash flow information from the company’s operations is used, directly showing cash receipts and cash disbursements.

Machine Hours

A measure of production output based on the amount of time machinery is operated.

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.