Which of the Following Is True of Taxes on Amounts

question 62

Multiple Choice

Which of the following is true of taxes on amounts withdrawn from a business?

• A) Salaries and bonuses received from the business corporation are not considered as expenses to the business.
• B) When one withdraws cash from a proprietorship or partnership, these sums are also taxable to that person as an individual.
• C) When owners receive a dividend from a corporation, it is taxed only once.
• D) The payment of pension plans is not deductible by the business.

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Definitions:

Practice Management Software

Software used by healthcare providers for daily operations, such as scheduling, billing, and maintaining electronic health records.

Financial Summary

A concise overview of a company's financial status, including income, expenses, and profit over a specific period.

Write-It-Once System

A type of computer storage system in which data, once written, cannot be modified or erased, ensuring data integrity.

Pegboard

A tool used in accounting and administrative systems to track financial transactions and appointments.