An Individual Must Complete Schedule B (Forms 1040A or 1040)if

question 56

Multiple Choice

An individual must complete Schedule B (Forms 1040A or 1040) if the following situation occurs:

• A)Received interest income of $600.
• B)Received interest income of $1,500.
• C)Received interest income of $1,300.
• D)Received interest income of $1,750.

---

Definitions:

AAR

Average Annual Return, which measures the average return generated by an investment per year over a specified period.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.

Cash Inflows

The total amount of money being transferred into a business, project, or financial product, typically measured within a specific period.