Which of the Following Statements Is INCORRECT Regarding Effective Dates

question 46

Multiple Choice

Which of the following statements is INCORRECT regarding effective dates in the Internal Revenue Code?

• A)All sections of a new tax law gointoeffect at the same time.
• B)New Code provisions may not gointoeffect immediately upon adoption by Congress.
• C)Some effective dates can precede passage of the act.
• D)All of these are correct.

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Definitions:

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity demanded, resulting in no surplus or shortage in the market.

Zero Economic Profit

A situation where a firm's total revenues exactly equal its total costs, indicating no above-normal profit.

Economist

A professional or expert in economics, studying the production, distribution, and consumption of goods and services.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.