Which of the Following Statements Is False Regarding the Earned

question 117

Multiple Choice

Which of the following statements is false regarding the earned income credit (EIC) ?

• A)Maximum amount of the credit depends on the earned income and number of children.
• B)The credit is refundable.
• C)If certain requirements are met,a taxpayer may receive advance payments of EIC.
• D)A taxpayer without children cannot claim the credit.

---

Definitions:

Inventory

The complete list of items such as goods, property, and raw materials a company holds for the purpose of resale or repair.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller, typically due to a return or an overcharge.

Gross Profit

Revenue minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.

Discount Period

A set time period during which a discount is available, or the period between the issuance of a bill and its payment due date where a discount may be taken for early payment.