Which of the Following Statements Is Incorrect

question 13

Multiple Choice

Which of the following statements is incorrect?

• A) Tour operators act as the principal in the provision of travel services while travel agents act just as agents.
• B) Tour operators can be held responsible for the failure to deliver services while travel agents are not.
• C) The main source of income for travel agents and tour operators comes from the commission earned from the sale of a package.
• D) Travel agents can act both as an agent and a principal.

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Definitions:

AGI

The total income earned by an individual in a year minus specific deductions allowed by the tax code, recalculated for emphasis as foundational in the determination of taxable income.

Qualifying Children

Dependents who meet specific IRS criteria regarding relationship, age, residency, and support, impacting eligibility for certain tax benefits.

EIC

Earned Income Credit, a refundable tax credit aimed at low- to moderate-income working individuals and families, particularly those with children, to reduce their tax liability and potentially qualify for a tax refund.

Foreign Income Tax

Taxes paid on income earned from sources outside the taxpayer's country of residence.