All of the Following Statements Are True Except

question 47

Multiple Choice

All of the following statements are true except

• A)once adopted,an accounting period normally cannot be changed without approval by the IRS.
• B)taxpayers who change from one accounting period to another must annualize their income for the resulting short period.
• C)taxpayers filing an initial tax return are required to annualize the year's income and credits.
• D)an existing partnership can change its tax year without prior approval if the partners with a majority interest have the same tax year to which the partnership changes.

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Definitions:

Drawee

A party upon whom a cheque or draft is drawn, typically a bank, responsible for paying the amount specified to the payee.

Negotiable Instruments

Financial documents promising payment to the holder, such as checks, bills of exchange, and promissory notes.

Referral Selling

A type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people.

Purchaser Supplies

Materials or goods procured by the buyer directly for use in a service or production process.