In 2014,T Corporation Changed Its Tax Year from Ending Each

question 35

True/False

In 2014,T Corporation changed its tax year from ending each April 30th to ending each December 31st.The corporation earned $60,000 during the period May 1,2014 through December 31,2014.The annualized income for the short year is $90,000.

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Definitions:

Average Accounting Return

A financial ratio that reflects the average net income of an investment compared to its average book value.

Liquid Investments

Assets that can be easily converted into cash with minimal impact on their value.

Biased

Demonstrating or exhibiting unfair or prejudiced perspectives, often leading to partial judgments or decisions.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, representing the rate at which the net present value of costs equals the net present value of benefits.