Identify Which of the Following Statements Is True

question 101

Multiple Choice

Identify which of the following statements is true.

• A) The terms "regular corporation" and "C corporation" are synonymous.
• B) A newly formed corporation must select its basic accounting method.
• C) A corporation is a separate taxpaying entity that must file a tax return annually.
• D) All of the above are true.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of the business activity level.

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating how much of each sale contributes to covering fixed costs.

Rapidly Changing Technology

Rapidly changing technology refers to the swift advancement in technological innovations and developments that can significantly affect industries and markets.

Soft Rationing

The limitation of capital due to internal policies of a company, not directly involving actual shortages or external financial conditions.