Identify Which of the Following Statements Is True

question 102

Multiple Choice

Identify which of the following statements is true.

• A) A corporate tax return must be filed by the fifteenth day of the fourth month following the close of the corporation's tax year.
• B) A corporation is required to file a tax return even if it has no taxable income.
• C) A corporation with gross receipts, total income, and total assets of $1,000,000 or less is permitted to file Form 1120-A.
• D) All of the above are false.

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Definitions:

Overhead Cost

Indirect costs not directly tied to production but necessary for running business operations, such as rent, utilities, and administrative expenses.

Fixed Component

A portion of the total costs that remains unchanged regardless of the level of production or business activity.

Inspection Cost

The expenses associated with the activity of ensuring that a product or service meets specified standards of quality.

Least-squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.