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.

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Definitions:

Trial Balance Columns

Lists in a company's accounting records that show all the debit and credit balances of its accounts, used for internal checking purposes.

General Journal

A ledger where double-entry accounting transactions are initially recorded, including details such as date, accounts affected, and amounts.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Inventory

The total amount of goods and materials a business holds for the purpose of resale or production.