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:

Total Variable Cost

The sum of all variable costs for a given level of production or output.

Total Cost

The complete sum of money required for the production of goods or services, including expenses that stay the same and those that vary.

Average Total Cost

The sum of all production costs divided by the total quantity produced, indicating the cost per unit of output.

Average Variable Cost

The cost per unit of a good or service that varies with the level of output, excluding fixed costs.