Which of the Following Statements Regarding Exclusions And/or Deferrals Is

question 30

Multiple Choice

Which of the following statements regarding exclusions and/or deferrals is false?

• A)Exclusions are favorable because taxpayers never pay tax on income that is excluded.
• B)Interest income from municipal bonds is excluded from gross income.
• C)Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year.
• D)An income item need not be realized in order to qualify as an exclusion item.

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Definitions:

Agitation

A state of anxiety or nervous excitement, often manifesting as restless or tumultuous behavior.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Acetylcholine

A neurotransmitter in the brain and peripheral nervous system important for muscle activation, and involved in attention, learning, and memory.

Antagonist

In pharmacology, a substance that acts against and blocks an action within the body, or in literature, a character who opposes the protagonist.