Identify Which of the Following Statements Is False

question 81

Multiple Choice

Identify which of the following statements is false.

• A)Interest is imposed on any tax not paid by the due date of the return (determined without regard to extensions).
• B)Interest is charged on underpayments, or paid on overpayments, at a rate of three percentage points higher than the federal short-term rate.
• C)Interest on underpayments is calculated using daily compounding and covers a time period from the original due date of the return until the date of payment.
• D)Any tax not paid by the due date for the return is subject to an interest charge.

---

Definitions:

Long-Term Note

A debt security that matures in more than one year and can provide interest income over its term.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its current assets.

Operating Cycle

The duration it takes for a company to purchase inventory, sell products or services, and collect cash from customers.

Collect Cash

The process of receiving cash in exchange for goods or services rendered, contributing to a company's cash inflows.