Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)The natural business year for fiscal-year election purposes is any tax year that ends within six months after the peak period of business.
• B)Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
• C)A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
• D)All of the above are false.

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Definitions:

Metabolic Tolerance

An adaptive process where increased metabolic activity reduces the effective concentration of a substance, such as a drug, requiring higher doses to achieve the same effect.

Synaptic Fatigue

A temporary decrease in synaptic efficacy after sustained activity, often resulting from the depletion of neurotransmitter supplies.

Cellular Tolerance

Cellular tolerance is a physiological adaptation where increased exposure to a substance, like a drug, leads to a decrease in the substance's effect on cells or tissues.

Intoxicated

The condition of having physical and mental faculties impaired by an excess of alcoholic drink or any substance, leading to altered mood, behavior, and coordination.