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Which of the Following Statements Is TRUE

question 6

Multiple Choice

Which of the following statements is TRUE?


Definitions:

Journal Entry

A journal entry is a record of a financial transaction in the accounting system of a business, consisting of debit and credit entries to maintain the double-entry bookkeeping system.

Federal Income Tax

The tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Dividend Income

Earnings distributed to shareholders from a portion of the company's earnings.

Rental Income

Earnings received from renting out property or equipment, often considered a stable source of income.

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