Which of the Following Statements Is Incorrect

question 4

Multiple Choice

Which of the following statements is incorrect?

• A)A corporation can choose a fiscal year-end of its choice when filing its first tax return.
• B)A calendar year corporate tax return is due 3½ months after the end of the fiscal year.
• C)Corporations that own foreign subsidiaries cannot file a Form 1120.
• D)Some corporations can use the cash-basis of accounting.

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Definitions:

Award of Damages

A monetary compensation granted to a party in a lawsuit for losses or injuries suffered because of another's party's actions or negligence.

Payment of Money

The transfer of currency or equivalent from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Property

Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.

Stare Decisis

A legal principle requiring judges to respect the precedents set by previous court decisions.