Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A)Under the cash method,prepaid income such as rent is usually taxed when received rather than when earned.
• B)Municipal bond interest is taxable.
• C)Alimony received by the taxpayer is taxable.
• D)Income earned by selling goods on the Internet is taxable.

Understand the concept of trade balances, including deficits and surpluses.

Analyze the factors influencing net exports and net capital outflow.

Explain the impact of international transactions on a country's net exports.

Determine the effect of currency exchanges and investment on net capital outflow.