Which One of the Following Tax Entities Does Not Pay

question 19

Multiple Choice

Which one of the following tax entities does not pay a Federal income tax?

• A)Trust
• B)Partnership
• C)Individual
• D)Corporation
• E)Estate

Determine the flow of costs in the manufacturing process, including beginning and ending inventories.

Understand the role and calculation of work in process inventory in manufacturing costs.

Distinguish between manufacturing and non-manufacturing costs in a business setting.

Appreciate the importance of managerial accounting reports in decision-making processes.

---

Definitions:

Collections Float

Float created while funds from customers’ cheques are being deposited and cleared through the cheque collection process.

Disbursement Float

Float created before cheques written by a firm have cleared and been deducted from the firm’s account. Disbursement float causes the firm’s own cheque-book balance to be smaller than the balance on the bank’s records.

Net Float

The difference between a firm’s disbursement float and collections float.

Marketable Securities

Financial instruments and assets that can easily be sold or converted into cash, typically within a year.