An Individual Must Complete Schedule B Forms 1040A or 1040)if

question 6

Multiple Choice

An individual must complete Schedule B Forms 1040A or 1040) if the following situation occurs:

• A)Received tax-exempt interest of $700.
• B)Received interest income of $100.
• C)Received dividend income of $1,000.
• D)Received interest income of $1,500.

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Definitions:

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity, indicating the extent to which it is financing its operations through debt.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its short-term assets.

Interest Expense

The cost incurred by an entity for borrowed funds over a period.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on current earnings before interest and taxes.