All of the Following Items Are Generally Excluded from Income

question 2060

Multiple Choice

All of the following items are generally excluded from income except

• A) child support payments.
• B) interest on state and local government bonds.
• C) interest on corporate bonds.
• D) life insurance proceeds paid by reason of death.

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Definitions:

Gross Margin Ratio

A financial metric that measures the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Net Sales

The residual income from sales once deductions for returns, allowances for impaired or absent merchandise, and markdowns are made.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Invoice

A document issued by a seller to a buyer that lists the products or services sold, their quantities, and the prices charged.