Which of the Following Is Not True of Tax Exempt

question 42

Multiple Choice

Which of the following is not true of Tax Exempt Entities?

• A) Even though they are tax exempt entities they must still file a tax return
• B) They have to report income that is unrelated to the organization
• C) They have Retained Earnings in the equity section of financial statements
• D) Tax exempt entities get an automatic $1,000 deduction in Unrelated Business Income

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Definitions:

Proximately Caused

An event sufficiently related to a legally recognizable injury to be considered the cause of that injury.

Breach of Warranty

A violation of the terms of a guarantee provided in a sales contract, where a product fails to meet the stated quality or standards.

Rescind Agreement

To revoke, cancel, or annul an agreement, legally undoing its terms and obligations.

Remedies Available

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