Amounts Withdrawn from Qualified Tuition Plans Are Tax-Free If the Amounts

question 91

True/False

Amounts withdrawn from qualified tuition plans are tax-free if the amounts are used for qualified higher education expenses including tuition,fees,books,and room and board for students attending on at least a half-time basis.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregated data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods and/or services, reflected in the cash flow statement.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not considered cash equivalents.

Financing Activities

involve transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.