Match Each Statement with the Correct Term Below

question 147

Multiple Choice

Match each statement with the correct term below.
-Support test

• A)Prepaid interest.
• B)Either a qualifying child or a qualifying relative
• C)One test for a qualifying relative.
• D)The minimum amount a taxpayer can deduct for personal expenditures.
• E)A deduction in this category is always allowed. That is, there is no minimum allowable amount and generally no income limitation placed on these deductions.
• F)Generally, these deductions are for specifically allowed personal expenditures.
• G)An exception to this test is a custodial parent.
• H)Interest paid on debt used to buy securities.
• I)Interest paid on credit cards, personal loans, car loans, etc.
• J)Interest paid on a mortgage secured by the taxpayer's residence. The proceeds of the loan are used to pay off a credit card, the interest is not deductible.
• k.A tax designed to prevent the shifting of unearned income to children of the taxpayer.

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Definitions:

Shares

A form of financial ownership in a company, giving the holder a portion of the profits and voting rights.

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making major corporate decisions.

CFO

The Chief Financial Officer is a high-ranking executive responsible for managing the financial actions of a company, including financial planning and record-keeping.

Companies

Organizations engaged in commercial, industrial, or professional activities.