Identify Which of the Following Statements Is False

question 5

Multiple Choice

Identify which of the following statements is false.

• A) The IRS can grant extensions of time of filing shareholder consents to the S election.
• B) An S election is filed by the corporation by using Form 2553 on or before the due date (without regard to any extensions) for the corporate tax return for the tax year in question.
• C) An S corporation must file a tax return for any year in which the S corporation is in existence.
• D) The election form can be signed by a person authorized to sign the S corporation tax return.

---

Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all of the manufacturing costs in the cost of a product, including both variable and fixed manufacturing overhead.

Produced

Refers to goods that have been completed through the manufacturing process and are ready to be sold or distributed.

Sold

The completed action of transferring ownership of goods or services to a buyer in exchange for payment.

Mixed Cost

Mixed cost refers to a cost that contains both variable and fixed cost components, which vary depending on the level of activity.