Corporations Are Allowed a Deduction for Charitable Contributions, Limited to 10

question 32

True/False

Corporations are allowed a deduction for charitable contributions, limited to 10 percent of taxable income before the deduction.

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Definitions:

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its debt obligations based on its current earnings.

Income Before Taxes

The earnings of a business before income tax expense has been deducted.

Interest Expense

The financial charge an entity experiences for borrowing money over a specific period.

Quick (Acid Test) Ratio

A liquidity measure evaluating a company's ability to cover its short-term liabilities with its most liquid assets.