Which of the Following Is Not True of Tax-Exempt

question 3

Multiple Choice

Which of the following is not true of Tax-exempt Entities having 501c 3 status?

• A) Donors to the organization may deduct their contributions as charitable donations.
• B) Churches and public charities with tax-exempt status must file an information return Form 990, 990EZ or 990-N with the IRS annually.
• C) Tax-exempt entities are prohibited from certain activities such as supporting political candidates.
• D) None of the above, these are all true of tax-exempt entities.

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Definitions:

Product Perishability

Indicates how quickly a product will lose its value if not sold or consumed within a short period.

Credit Periods

The duration of time allowed by a seller for a buyer to pay for a product or service after the sale has been made, usually expressed in days.