Identify Which of the Following Statements Is False

question 55

Multiple Choice

Identify which of the following statements is false.

• A)The IRS will not issue a ruling on the topic of whether compensation is reasonable.
• B)Tax returns for all taxpayers must be filed on or before the fifteenth day of the fourth month following the year-end.
• C)A corporation must file a tax return even if it has no gross income.
• D)Extensions of time for filing tax returns may be obtained.

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Definitions:

Liquidation

The process of closing a business and distributing its assets to claimants, typically when the business is insolvent.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Other Assets

Non-current assets that do not fit into the standard categories of fixed assets, investments, or intangible assets, usually including long-term receivables and deferred charges.

Remaining Assets

Assets that are left over after certain liabilities or expenses have been deducted.