An Improper Election to Use a Fiscal Year Automatically Places

question 6

True/False

An improper election to use a fiscal year automatically places the taxpayer on the calendar year.

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Definitions:

Account

An individual record within a financial system or ledger that tracks the financial transactions of a specific asset, liability, revenue, expense, or equity component.

Normal Balance

The side (debit or credit) on which increases to the account are recorded, consistent with the accounting equation.

Financial Statement

Reports that provide information about a company's financial condition, performance, and cash flows, including the balance sheet, income statement, and statement of cash flows.

Account

An account in accounting is a record within the general ledger that is used to collect and store debit and credit amounts.