Identify Which of the Following Statements Is False

question 64

Multiple Choice

Identify which of the following statements is false.

• A)The number "5" in the citation Reg. Sec. 1.166-5 refers to the paragraph number.
• B)The Cumulative Bulletin is issued semiannually while the Internal Revenue Bulletin is issued weekly.
• C)The citation Rev. Rul. 2006-5, I.R.B. 2006-1, 33, indicates that the revenue ruling can be found on page 33 of the 1st I.R.B. for 2006.
• D)All of the above are false.

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Definitions:

Trial-balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns that are equal, used to ensure the accuracy of financial transactions.

Insurance Expense

The cost allocated to a period for holding insurance policies, regarded as a non-operational expense in financial statements.

Prepaid Insurance

An asset account that reflects the amount of insurance premiums that have been paid in advance and are gradually recognized as an expense over the coverage period of the policy.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.