What Term Identifies Organizations That Do Not Have to Pay

question 40

Multiple Choice

What term identifies organizations that do not have to pay federal income taxes?

• A) public
• B) private
• C) tax-exempt
• D) income-exempt

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Definitions:

Selling Expenses

Costs incurred directly from the selling of products or services, such as advertising and sales staff salaries.

Depreciation

The methodical distribution of a physical asset's cost throughout its expected lifespan.

Cost Of Goods Sold

Expenses directly linked to the creation of products sold by a business, such as materials and workforce costs.

Merchandising Firm

A business that purchases finished products and sells them to consumers without altering the state of the product.