Which of the Following Statements Is Incorrect

question 47

Multiple Choice

Which of the following statements is incorrect?

• A)To determine the taxable amount of each annuity payment,the taxpayer must know the cost of the contract.
• B)The exclusion ratio represents the proportion of each annuity payment that will be tax-free.
• C)If annuity payments are to be received for a fixed period,the taxpayer does not need to refer to the life expectancy tables provided by the IRS.
• D)Once the cost of the annuity has been recovered,any remaining payments will be tax-free.

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Definitions:

Undifferentiated Selling

The process of applying and designing selling strategies equally to all accounts.

Time Management Skills

The ability to use one's time effectively and efficiently, especially by allocating specific time slots to activities based on their importance.

Systematic Account

An organized method or approach to recording financial transactions or accounts that follow a consistent procedure.

Outcomes

The results or effects that stem from certain actions, processes, or behaviors.