Which of the Following Statements About the Uniform Division of Income

question 32

Multiple Choice

Which of the following statements about the Uniform Division of Income for Tax Purposes Act (UDITPA) is false?

• A) UDITPA requires all states to use the same method for apportioning income of multistate businesses.
• B) UDITPA recommends an equally-weighted three-factor formula for apportioning income of multistate businesses.
• C) The UDITPA property factor equals the cost of real or tangible personal property located in a state divided by the total cost of such property.
• D) The UDITPA payroll factor equals the compensation paid to employees working in a state divided by total compensation.

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Definitions:

Corporate Bonds

Debt securities issued by corporations to fund capital improvements, expansions, or other business needs.

Idle Cash

Cash that is not currently invested or used in transactions, often earning minimal or no interest.

Cash Management

Cash management is the process of collecting, managing, and investing a company's cash flow in order to meet its operational expenses and maintain liquidity.

Liquidity Management

The practice of managing assets and liabilities in such a way that an individual or firm can meet its short-term obligations.