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.

Understand the classification of investments and the criteria for using the equity method.

Recognize how dividends and net income or loss from investees are handled under the equity method.

Distinguish between the cost method, equity method, and fair value models for accounting investments.

Identify the implications of significant influence and control in relation to investment accounting.

---

Definitions:

Chromosomes

Chromosomes are thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information in the form of genes.

Genes

Segments of DNA located on chromosomes that code for proteins, determining the inheritance of physical and some behavioral traits.

Genes

Units of heredity found in all living organisms that carry information for the development, functioning, and reproduction of organisms.

C-Section

A surgical procedure known as cesarean section, used to deliver a baby through an incision in the mother's abdomen and uterus.