Suppose That You Are Not Able to Complete Your Tax

question 97

Multiple Choice

Suppose that you are not able to complete your tax returns by April 15. Which of the following statements is most accurate?

• A) You must provide adequate need in tax court, requesting extension of the deadline.
• B) You can apply for an automatic extension - no questions asked, but you must enclose a check in payment for estimated taxes due.
• C) You may have an extension, and the taxes are not due until the extension expires.
• D) You do not have to pay interest on any taxes due on April 15, provided that you have filed for and have an approved extension prior to April 1 of the tax year.
• E) None of the above statements are true.

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Definitions:

Total Contribution Margin

The difference between sales revenue and total variable costs, indicating the amount contributing to covering fixed costs and profit.

Operating Leverage

The ratio of fixed costs to total costs. The higher a firm’s operating leverage, the greater will be the variability of profits for a given change in sales.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Reward System

Programs and strategies to recognize and compensate employees for their performance and contribution to the organization.