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

question 23

Multiple Choice

Matching
Regarding classification as a dependent, classify each statement in one of the four categories:
-A daughter-in-law who lives with taxpayer.

• 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:

Net Float

The difference between checks written against and deposited in an account, which has not yet been cleared and credited or debited.

Writes Cheques

The act of creating a written document instructing a bank to pay a specific amount of money from the writer's account.

Cheques Clear

Refers to the process by which a bank verifies that the funds available in the account of the individual who wrote the cheque are sufficient to cover the amount, and subsequently moves those funds to the account of the cheque recipient.

Incremental Bad Debt

Additional losses expected from non-payment or default by borrowers beyond what was originally anticipated.