Each of the Numbered Items Below Is Accorded Only One

question 141

Multiple Choice

Each of the numbered items below is accorded only one of the following lettered treatments. Use the existing law as it applies to the current year, match the best answer to the statements below.
-Raymond dies on July 8^th of the current year. Out of love and respect for Raymond, his employer gives his widow $5,000.

• A)Fully excluded from gross income.
• B)Fully included in gross income.
• C)Partially excluded from gross income.

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Definitions:

Revenues

The total income generated from normal business operations, including discounts and deductions for returned merchandise.

Cash Receipts

The collection of money, including cash, checks, and credit card payments, recorded by a business.

Cash Payments

Transactions where the payment for goods or services is made in cash at the time of purchase.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services received but not yet paid for.