INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 194

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The major source of revenue for the federal government is [income | Social Security] taxes.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

---

Definitions:

Revenue Recognized

The point at which a company records the revenues it has earned in its financial statements, according to specific criteria outlining when the earnings process is considered complete.

Sustainable Income

The portion of earnings that can be consistently generated and expected to continue in the future, excluding any unusual or one-time profits or losses.

Transitory Income

Income that is not expected to recur regularly, often affecting financial analysis due to its non-permanent nature.

Earned Income

Income derived from active participation in a business or trade, including wages, salaries, tips, and other compensation for services rendered.