Identify Which of the Following Statements Is False

question 23

Multiple Choice

Identify which of the following statements is false.

• A) A corporation must file a tax return annually.
• B) A corporation can obtain an automatic six-month extension of time to file its tax return.
• C) The IRS will permit an extension of time to file a corporate return beyond the original due date only when the corporation's delay is reasonable.
• D) The IRS can rescind the extension period.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a specific period.

Cost of Goods Sold

This refers to the total cost of all the ingredients or materials used to create a product, including labor and manufacturing overhead, subtracted from revenue to calculate gross profit.

Inventory

Inventory represents the goods and materials that a business holds for the ultimate goal of resale or production, encompassing raw materials, work-in-progress, and finished goods.