Identify Which of the Following Statements Is True

question 102

Multiple Choice

Identify which of the following statements is true.

• A) A corporate tax return must be filed by the fifteenth day of the fourth month following the close of the corporation's tax year.
• B) A corporation is required to file a tax return even if it has no taxable income.
• C) A corporation with gross receipts, total income, and total assets of $1,000,000 or less is permitted to file Form 1120-A.
• D) All of the above are false.

Understand employer obligations for matching Social Security and Medicare deductions.

Compute net salary after deductions including federal income tax, FICA, and medical insurance.

Calculate taxable income after applying withholding allowances for the employee and dependents.

Calculate taxable income after accounting for withholding allowances.

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Definitions:

Other Comprehensive Income

Earnings that are not included in net income on the income statement and relate to gains and losses that have not yet been realized.

Retained Earnings

Retained earnings represent the cumulative amount of a company's profits that are reinvested in the business, rather than distributed to shareholders as dividends.

Bond Debenture

A type of debt instrument that is not secured by physical assets or collateral but backed by the general creditworthiness of the issuer.

Corporation Issues

Problems or challenges faced by a corporation, such as governance, regulatory compliance, or fiscal management.