Which of the Following Statements Regarding Tax Payments Is True

question 2

Multiple Choice

Which of the following statements regarding tax payments is true?

• A) Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed.
• B) Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed.
• C) Sole proprietors must make quarterly estimated payments of income tax and self-employment tax.
• D) Sole proprietors are not required to pay income tax or self-employment tax until the return is filed.

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Definitions:

Economic Climate

The overall state of the economic environment, characterized by factors such as growth rates, unemployment, inflation, and consumer confidence.

Conditions

Conditions include the specific requirements, terms, or situations that affect or determine the operation of agreements, policies, or actions.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Borrowed Funds

Money obtained through loans or credits that must be repaid over time, with interest, used for financing various activities or purchasing assets.