Indicate Whether Each of the Following Statements Is True or False.If

question 68

Short Answer

Indicate whether each of the following statements is true or false.If a company made the following journal entry,
this entry would cause:
_____ a)total claims to stay the same.
_____ b)total assets to remain the same.
_____ c)liabilities to decrease.
_____ d)cash flows from operating activities to increase.
_____ e)owners' equity to stay the same.

---

Definitions:

Tax Liability

The total amount of tax owed by an individual or entity to the tax authorities.

Married Couple

Two individuals legally married to each other, who may file joint or separate tax returns in the eyes of the law.

Failure to File

Failure to File is the penalty incurred for not submitting a required tax return or document by the due date, which can result in fines and interest charges.

Tax Shown

The amount of tax displayed on a taxpayer's return or assessed as due by the IRS.