Which of the Following Statements About Tax Strategies Is False

question 73

Multiple Choice

Which of the following statements about tax strategies is false?

• A)Tax planners should prefer a simple strategy over a complex strategy.
• B)Tax planners should prefer a flexible strategy over an inflexible strategy.
• C)Tax planners should consider the tax consequences of a strategy to all parties.
• D)None of the above is false.

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Definitions:

Cash Collections

The process of gathering all cash receipts from sales or other sources during a particular period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.

Manufacturing Overhead Budget

A detailed plan that estimates the expected manufacturing overhead costs for a specific period, assisting in financial planning.