Which of the Following Statements Is True Concerning Federal Income

question 19

Multiple Choice

Which of the following statements is true concerning federal income tax laws and estates?

• A) Estates are subject to estate taxes and, therefore, exempt from income tax.
• B) The income tax on the earnings from an estate is levied only on the beneficiary.
• C) The income tax on the earnings from an estate is levied only on the estate.
• D) The income tax on the earnings from an estate is levied either on the estate or the beneficiary.

---

Definitions:

Internal Control

A process designed to ensure the safety and efficiency of the financial operations of a company, along with compliance with laws and accuracy in reporting.

Sales Clerks

Employees responsible for assisting customers, processing transactions, and managing products within a retail environment.

Days' Sales Uncollected

Days' Sales Uncollected is a financial metric calculating the average number of days it takes a company to collect payments after a sale has been made.

Petty Cash Receipts

Petty cash receipts are documents that record small, immediate cash expenses incurred by a business, tracking the disbursement and replenishment of a petty cash fund.