Identify Which of the Following Statements Is False

question 61

Multiple Choice

Identify which of the following statements is false.

• A)A corporation's fiscal year generally must end on the last day of the month.
• B)A fiscal year may not end on December 31.
• C)A new corporation can elect a fiscal year that runs from February 16 to February 15 of the following year.
• D)A corporation's first tax year may not cover a full 12-month period.

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Definitions:

Fair Value Changes

Fair value changes refer to adjustments made to the recorded value of an asset or liability to reflect its current market value, impacting the financial statements accordingly.

Impairment

A reduction in the recoverable amount of a fixed asset or goodwill below its book value, often reflecting decreased future earning potential.

E&E Assets

Exploration and Evaluation Assets, which are capitalized costs related to the exploration and evaluation of mineral resources before the technical feasibility and commercial viability are determined.

Commercially Feasible

A product or project is considered commercially feasible if it is likely to generate a sufficient level of income to outweigh its costs and risks.