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

question 60

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:

Moving Backward

The process of going in a direction opposite to the one that is considered forward or advancing.

Ventricular Systole

The phase of the cardiac cycle during which the ventricles contract, pumping blood out of the heart into the arteries.

Pulmonary Artery

The artery that carries deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Aorta

The largest and main systemic artery of the vertebrate body; arises from the left ventricle and branches to distribute blood to all parts of the body except the lungs.