Brad Was Disabled for Part of the Year,and He Received

question 106

True/False

Brad was disabled for part of the year,and he received $11,500 of benefits from a disability insurance policy purchased by his employer.Brad must include all $11,500 of benefits in his gross income because he was not taxed on the disability insurance premiums paid by his employer.

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Definitions:

Bonds Payable

A financial accounting term that refers to the bonds a company has issued that must be repaid at a future date.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability per share of stock.

Acid-test Ratio

A financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory.

Debt to Assets Ratio

A financial metric indicating the proportion of a company's assets financed through debt, used to assess financial leverage.