All of the Following Statements Are True Except

question 99

Multiple Choice

All of the following statements are true except

• A)once adopted,an accounting period normally cannot be changed without approval by the IRS.
• B)taxpayers who change from one accounting period to another must annualize their income for the resulting short period.
• C)taxpayers filing an initial tax return are required to annualize the year's income and prorate exemptions and credits.
• D)an existing partnership can change its tax year without prior approval if the partners with a majority interest have the same tax year to which the partnership changes.

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Definitions:

Articles Of Partnership

A document that specifies the rights and responsibilities of the partners in a business partnership.

Equal Participation

The principle that all members or parties should have the same opportunity to contribute and influence a process or decision.

Personal Liability

The legal responsibility of an individual to settle debts or obligations from their personal assets.

Honest Mistake

An unintentional act or omission that occurs despite a person or entity's attempt to act with care or within the legal boundaries.