Which of the Following Statements Regarding Dependents Is False

question 114

Multiple Choice

Which of the following statements regarding dependents is false?

• A)A taxpayer may be allowed to claim another as a dependent even if the taxpayer has no family relationship with the other person.
• B)To qualify as a dependent of another, an individual must be a resident of the United States.
• C)An individual who qualifies as a dependent of another taxpayer may not claim any dependents.
• D)An individual cannot qualify as a dependent of another as a qualifying relative taxpayer if the individual's gross income exceeds a certain amount.

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Definitions:

Cost of Goods Purchased

The total cost incurred for goods bought for resale or used in production during a specific period, excluding labor and overhead expenses.

Net Purchases

Total purchases minus returns, allowances, and discounts.

Freight-In

Freight-in refers to the shipping cost associated with getting raw materials or inventory to a company, which is added to the cost of goods.

Cost of Goods Sold

The expenses directly related to the manufacturing of products a company sells, which includes the cost of materials and labor.