Which of the Following Statements Best Describes the Substantial Presence

question 4

Multiple Choice

Which of the following statements best describes the substantial presence test as it applies to determining if a non-U.S. citizen is a resident alien for U.S. tax purposes?

• A) To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year.
• B) To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year and each of the prior two years.
• C) To be treated as a resident alien, an individual must be physically present in the United States for 183 days equivalent using a formula that includes the current year and the prior two years.
• D) To be treated as a resident alien, an individual must be physically present in the United States for 183 days equivalent using a formula that includes the current year and the prior year.

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Definitions:

Long-term Liabilities

Debts or obligations that are due beyond the next twelve months.

Correcting Entries

Adjustments made in the accounting records to rectify mistakes made in previous financial transactions or entries.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, used to verify the equality of debits and credits.

Balance Sheet Accounts

Accounts that are reported on the balance sheet and include assets, liabilities, and equity sections, reflecting the financial position of a company at a specific time.