There Are Four Types of Accounting Changes - Principles, Estimates

question 104

True/False

There are four types of accounting changes - principles, estimates, entities and errors.

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Definitions:

Modified AGI

An adjustment to adjusted gross income, including or excluding certain items, used to calculate eligibility for specific tax benefits.

Education Loan Interest

The interest paid on a loan taken out to pay for educational expenses, which may be deductible on your taxes under certain conditions.

Alimony

Payments one spouse makes to another under a separation or divorce agreement, which may have tax implications.

Recipient Spouse

The spouse who receives alimony or similar payments from the other spouse in a divorce settlement.