A Partnership May Elect to Use a Fiscal Year If

question 123

True/False

A partnership may elect to use a fiscal year if the business recognizes 25% or more of its annual gross receipts in the last two months of the fiscal year for three consecutive 12-month periods.

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Definitions:

Marginal Tax Rate

The rate of tax applied to the last dollar of income or the next dollar of taxable income earned.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions.

Great Recession

A significant decline in global economic activity that occurred from late 2007 through 2009, considered the most severe economic downturn since the Great Depression.

Social Security

A government program that provides financial assistance to people with an inadequate or no income, especially the elderly, disabled, and unemployed.