Which of the Following Statements About Short-Period Returns Is True

question 96

Multiple Choice

Which of the following statements about short-period returns is true?

• A)If a taxpayer must file a short-period return because the IRS granted permission for a change in the taxpayer's year,the tax for the year must be based on annualized income.
• B)The tax on a short-period return must be based on annualized income only if the taxpayer failed to obtain permission from the IRS to change its taxable year.
• C)The tax on every short-period return must be based on annualized income.
• D)None of the above is true.

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Definitions:

Substitutes

Goods or services that can replace each other in use, affecting demand when their prices or other attributes change.

Demand

The quantity of a product or service consumers are willing and able to purchase at various prices.

Tax Revenue

The income that is gained by governments through taxation.

Government

A system or group of people governing an organized community, often a state.