Identify Which of the Following Statements Is True

question 20

Multiple Choice

Identify which of the following statements is true.

• A) If a couple files a joint return but only one spouse had income, only the spouse with income is responsible for paying any tax due.
• B) Joint and several liability means that each spouse is potentially liable for the full amount of tax due.
• C) If a taxpayer fails to file a return, the statute of limitations is extended to 10 years.
• D) All of the above are false.

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Definitions:

Shortage

A market condition in which the demand for a product or service exceeds its supply, often leading to higher prices.

Binding Price Ceiling

A government-imposed price limit on goods or services that is set below the market equilibrium price, leading to shortages.

Price Paid

The amount of money exchanged for a good or service in a transaction.

Quantity Sold

The total number of units of a product or service sold in a given period.