Which One of the Following Is the Best Example of an Event

question 12

Multiple Choice

Which one of the following is the best example of an event related to an expected return?

• A)an announcement that a firm will meet its sales projections
• B)a GDP growth rate that surpassed predictions
• C)a market decline due to increased tensions in the world
• D)a news release that a firm is going to be acquired at a premium
• E)a sudden increase in the inflation rate

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Definitions:

Earned Income

Income generated from active employment and work, including wages, salaries, tips, and other compensation.

Qualifying Widow(er)

A tax filing status allowing a surviving spouse with a dependent child to use married filing jointly tax rates for up to two years after the year of their spouse's death.

Dependent Child

A child who relies on a guardian for financial support and meets certain IRS requirements for tax purposes.

Taxable Income

The amount of a person's or organization's income used to determine how much tax is owed to the government.