Which of the Following Statements About Divorce Settlements Is False

question 54

Multiple Choice

Which of the following statements about divorce settlements is false?

• A)Alimony is excluded from the recipient's gross income.
• B)Child support is excluded from the recipient's gross income.
• C)Alimony is an above-the-line deduction for the payer.
• D)None of the above is false.

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Definitions:

Cash Received

The actual inflow of cash into a business from various sources such as sales, financing, or investment activities.

Interest

The cost of borrowing money or the return on invested funds, usually expressed as an annual percentage rate.

Cash Flow

The comprehensive measure of funds circulating in and out of a business entity, chiefly in relation to its cash solvency.

Operating Cash Flows

Cash generated from the primary activities of a business, such as revenue from sales, minus operating expenses.