A Personal Allowance

question 15

Multiple Choice

A personal allowance:

• A) amounted to $2,000 in 20--.
• B) may be claimed to reduce the amount of withholdings from the employee's earnings.
• C) is indexed for inflation every calendar quarter.
• D) may be claimed at the same time with each employer for whom an employee is working during the year.
• E) for one person is a different amount for a single versus a married taxpayer.

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Definitions:

Dividend Policy

A company's strategy outlining how often dividends will be paid to shareholders and in what amount.

Cash Dividend

A cash dividend refers to a distribution of a company's earnings to its shareholders as cash.

Total Liabilities

The combined financial obligations or debts a company owes to external parties.