Match Each Statement with the Correct Term Below

question 56

Multiple Choice

Match each statement with the correct term below.
-Unearned income

• A)The category of income that includes interest, dividends, and rents.
• B)Income from wages, salaries, and trade or businesses.
• C)Interest income resulting from making an interest-free gift loan of $200,000.
• D)A taxable amount received from a state plan to provide a substitute for an employee's earned income.
• E)A series of equal payments received over equal time periods.
• F)A receipt of cash from a former spouse that is included in gross income.
• G)A payment received from a former spouse that is not included in gross income.
• H)A division of marital assets that does not result in any income recognition.
• I)A sale of property in which at least one payment is received in a tax year after the year of sale
• J)A method of accounting that must be used to recognize income from long-term construction contracts.
• K)A debt instrument that has the interest paid at maturity rather than throughout the life of the debt.

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Definitions:

International Businesses

Companies that conduct commerce across national borders, engaging in international trade or investment.

Privatization

The transfer of ownership and management of enterprises from the public sector (government) to private individuals or organizations.

Command Economy

An economic system where the government has primary control over the production and distribution of goods and services.

Market Economy

An economic system where the prices of goods and services are determined in a free price system, primarily through supply and demand.