Which of the Following Is Not an Example of an Exempt

question 29

Multiple Choice

Which of the following is not an example of an exempt organization?

• A) Religious, charitable, or educational organization.
• B) Voluntary employees' beneficiary association.
• C) Labor, agricultural, or horticultural organization.
• D) Stock exchange.
• E) All of these can be exempt from tax.

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Definitions:

Accounting Records

Documents and books that capture all the financial transactions of a business or individual.

Closing Process

The procedure in accounting that involves the transfer of all income and expense account balances to the retained earnings to prepare the ledger for the next accounting period.

Real Accounts

Accounts that relate to assets, liabilities, and equity, which are not closed at the end of the accounting period and carry their balances into future periods.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, such as assets, liabilities, and equity accounts.