Which of the Following Statements Regarding Exclusions And/or Deferrals Is

question 30

Multiple Choice

Which of the following statements regarding exclusions and/or deferrals is false?

• A)Exclusions are favorable because taxpayers never pay tax on income that is excluded.
• B)Interest income from municipal bonds is excluded from gross income.
• C)Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year.
• D)An income item need not be realized in order to qualify as an exclusion item.

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Definitions:

Goal Incongruence

A situation where the objectives of different stakeholders or parts of an organization conflict with each other, potentially leading to inefficiencies or counterproductive actions.

Cost Target

Cost target is the budgeted or desired cost of manufacturing a product or executing a project, aimed at ensuring competitiveness and profitability.

Responsibility Accounting

An accounting system focused on controlling costs and evaluating performance by assigning responsibility to individual managers or departments.

Benchmarks

Benchmarks are standard points of reference against which performance, quality, or value can be measured, often used for comparison in business, finance, and industry.