Identify Which of the Following Statements Is False

question 84

Multiple Choice

Identify which of the following statements is false.

• A)In addition to interest, taxpayers may be subject to penalties for failure to file on time and failure to pay taxes by the due date for the return.
• B)The failure-to-file penalty is levied against taxpayers who do not file a return by its due date at a rate of 5% per month (or fraction of a month)with a maximum additional penalty of 25%.
• C)The failure-to-pay penalty is imposed at a rate of 5% per month (or fraction of a month)with a maximum penalty of 25%.
• D)A different interest rate is charged to corporate and noncorporate taxpayers.

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Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets on the balance sheet until they are expensed.

Management Services

Provided by a specialized team or firm, these services include a wide range of administrative and support functions to improve efficiency and effectiveness within an organization.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Office Supplies

Items such as pens, paper, staplers, and other materials used daily by businesses and considered as short-term assets on the balance sheet.