Identify Which of the Following Statements Is False

question 5

Multiple Choice

Identify which of the following statements is false.

• A)A corporation with annual gross receipts of $25,000,000 or less can use the accrual method to account for sales, cost of goods sold, inventories, accounts receivable and payable, and the cash method for other income and expenses.
• B)Casualty losses incurred by a corporation are deductible subject to a nondeductible floor similar to those applicable to individuals.
• C)The passive loss rules do not apply to widely held C corporations.
• D)Corporations may receive a deduction for dividends received from other corporations.

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Definitions:

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of shells of marine organisms, snails, and eggs.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the decayed remains of plants and animals over millions of years.

Cellular Respiration

The metabolic process by which cells convert nutrients into energy (ATP), involving the consumption of oxygen and release of carbon dioxide.