For 2010, the Amount of Exemption That a Child Can

question 10

Multiple Choice

For 2010, the amount of exemption that a child can enjoy on any interest, dividends or capital gains income is limited to:

• A) $950.
• B) $1900.
• C) $10,000.
• D) There is no exemption for this type of income.

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Definitions:

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, such as issuing shares or taking loans.

Investing Activities

Refers to the acquisition and disposition of long-term assets and other investments not included in cash equivalents.

Free Cash Flow

The amount of operating cash flow available to a company after it purchases the property, plant, and equipment necessary to maintain its current operations, computed as cash flows from operating activities less cash used to purchase property, plant, and equipment.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investment activities.