Identify Which of the Following Statements Is False

question 84

Multiple Choice

Identify which of the following statements is false.

• A)In addition to interest, taxpayers may be subject to penalties for failure to file on time and failure to pay taxes by the due date for the return.
• B)The failure-to-file penalty is levied against taxpayers who do not file a return by its due date at a rate of 5% per month (or fraction of a month)with a maximum additional penalty of 25%.
• C)The failure-to-pay penalty is imposed at a rate of 5% per month (or fraction of a month)with a maximum penalty of 25%.
• D)A different interest rate is charged to corporate and noncorporate taxpayers.

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Definitions:

Plant Asset

Plant assets are long-term tangible assets that are used in the production or supply of goods and services, such as machinery, buildings, and vehicles.

Office Equipment

Tangible property (such as desks, chairs, computers, etc.) used in an office environment to perform work activities.

Patent

A legal right granted by a government authority to an inventor to exclude others from making, using, or selling an invention for a certain period of time.

Merchandise Inventory

Goods that a company has in stock and available for sale to customers.