All of the Following Items Are Included in Gross Income

question 110

Multiple Choice

All of the following items are included in gross income except

• A)alimony received.
• B)rent income.
• C)interest earned on a bank account.
• D)child support payments received.

---

Definitions:

Accounts Receivable

Funds that are expected to be received by a company from its customers who have purchased goods or services on credit, essentially representing a line of credit extended by the business and recorded as an asset.

Income Statement Approach

The Income Statement Approach is a method used in accounting to create the income statement by focusing on revenues, expenses, and income to determine the net profit or loss for a period.

Direct Write Off Method

A method to account for bad debts by directly writing off specific invoices determined to be uncollectible.

Balance Sheet Approach

A method for valuing accounts that focuses on determining net realizable values for balance sheet items.