What Does Personal Income Include and Exclude

question 151

Multiple Choice

What does personal income include and exclude?

• A) It includes retained earnings,corporate income taxes,and social insurance contributions,and excludes interest and transfer payments received by households from government.
• B) It excludes retained earnings,corporate income taxes,social insurance contributions,and interest,and includes transfer payments received by households from government.
• C) It excludes retained earnings,corporate income taxes,and social insurance contributions,and includes interest and transfer payments received by households from government.
• D) It includes retained earnings,corporate income taxes,social insurance contributions,and interest,and excludes transfer payments received by households from government.

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Definitions:

Intangible Assets

Non-physical assets that possess value, such as trademarks, patents, goodwill, and copyrights.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Long-Lived Assets

Tangible or intangible assets that provide economic benefits to a business over several years, including property, plant, and equipment.

Machinery And Equipment

Heavy tools and instruments used in various industries for manufacturing, processing, or handling of products.