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:

Ultrasounds

A diagnostic medical procedure that uses high-frequency sound waves to create images of structures within the body.

MRIs

Magnetic Resonance Imaging is a radiological method for creating images of the body's anatomy and physiological activities.

Numerical

Relating to numbers, or expressed as numbers, often used in data or mathematical contexts.

Patient Privacy

The right of patients to have their personal and medical information kept confidential, protected under laws and regulations such as HIPAA in the United States.