Taxable Income Does Not Include

question 44

Multiple Choice

Taxable income does not include:

• A)Alimony payments.
• B)Qualified dividend payments.
• C)Interest payments.
• D)Child support payments.

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Definitions:

Income Summary

An accounting tool used to aggregate all income and expense accounts to determine net income or loss for a period.

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Withdrawal Account

An account that tracks the money taken out of a business by its owners for personal use.