Which of the Following Statements Is Not Correct

question 93

Multiple Choice

Which of the following statements is not correct?

• A)Corporations must estimate and prepay their income taxes through quarterly tax deposits.
• B)At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes.
• C)Income Tax Expense may be shown as an operating expense on a corporation's income statement.
• D)On a corporate income statement, the tax effect of each extraordinary item is offset against each gain or loss to show the effect 'net of taxes'.

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Definitions:

Domestic Resources

Resources found within a country’s borders that can be used for economic gain, such as labor, land, and raw materials.

North American Free Trade Agreement

A trade agreement between Canada, Mexico, and the United States aimed at eliminating tariffs and reducing trade barriers.

U.S. Trade

The exchange of goods and services between the United States and its trading partners, involving exports, imports, and the balance of trade dynamics.

Cheap Labor

Workforce available for employment at low wage rates, often used by companies to reduce production costs.