Exemptions and Deductions Are Used

question 105

Multiple Choice

Exemptions and deductions are used

• A)to add to taxes that must be paid.
• B)by taxpayers to reduce the amount of income subject to tax.
• C)to determine the type of tax structure.
• D)to determine what items are subject to sales taxes.

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Definitions:

Direct Suit

A direct suit is a legal action initiated directly by one party against another for the purpose of resolving a dispute or seeking damages.

Revised Act

An updated or amended version of a statute that reflects changes in the law or its interpretation.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization, making strategic decisions and providing governance.