Q3
Gifts and Relief are
A.
Merchandise Payment
B.
Service Payment
C.
Factory Income
D.
Transfer payment
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Gifts and Relief are Transfer payment. A transfer payment is money paid to an individual who has not performed any service or rendered any goods for it. Transfer payments are ways for local, state, and federal governments to redistribute money to those in need. Transfer payments are considered income and are potentially taxable.