Classify Each of the Following Independent Statements

question 26

Multiple Choice

Classify each of the following independent statements:.
-State income tax refund received after death on a tax return filed before death.

• A)Some or all of the asset is included in the decedent’s gross estate.
• B)None of the asset is included in the decedent’s gross estate.

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Definitions:

Insurance Expense

The cost associated with purchasing insurance policies for the business, considered an operating expense.

Postage Expense

The cost incurred by a business to send mail or packages, recorded as an expense in the business's financial statements.

Petty Cash Account

A small amount of cash kept on hand within a business for minor, routine expenses.

Petty Cash Overage

A situation where the amount of petty cash on hand is more than the recorded amount, indicating discrepancies in transactions or recording errors.