A Corporation fiLing Its fiRst Return Must "Annualize" Its Income

question 40

True/False

A corporation filing its first return must "annualize" its income if the tax period is less than 12 months.

---

Definitions:

Direct Labor

The wages and benefits paid for the labor directly involved in the production of goods or services.

Budgeting

The method of devising a strategy for allocating your finances, detailing an entity's economic and functional objectives.

Activity Variance

The difference between planned activity levels and actual activity levels in budgeting and accounting.

Selling And Administrative Expenses

Costs related to selling products and managing the business, not directly tied to production.