Matching Regarding Classification as a Dependent, Classify Each Statement in One

question 5

Multiple Choice

Matching
Regarding classification as a dependent, classify each statement in one of the four categories:
-A granddaughter, who lives with taxpayer, is 19 years old, earns $5,000, and is not a full-time student.

• A)Could be a qualifying child.
• B)Could be a qualifying relative.
• C)Could be either a qualifying child or a qualifying relative.
• D)Could be neither a qualifying child nor a qualifying relative.

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Definitions:

Comparative Statement of Income

A financial statement presenting a company's revenues, expenses, and profits over multiple periods for comparison purposes.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is actually received or paid out, as opposed to when they are incurred.

Cost Of Goods Sold

Expenses directly linked to creating products sold by a business, which include labor and materials.

Cash Paid

Cash paid encompasses any outflow of cash from a company or individual for various purposes, including expenses, acquisitions, or investments.