Identify Which of the Following Statements Is False

question 20

Multiple Choice

Identify which of the following statements is false.

• A)A corporation with annual gross receipts of $5,000,000 or less can use the accrual method to account for sales,cost of goods sold,inventories,accounts receivable and payable,and the cash method for other income and expenses.
• B)Casualty losses incurred by a corporation are deductible subject to a nondeductible floor similar to those applicable to individuals.
• C)The passive loss rules do not apply to widely held C corporations.
• D)Corporations may receive a deduction for dividends received from other corporations.

---

Definitions:

Gain-sharing

A compensation strategy that shares financial gains from improved performance or productivity with employees.

Group-oriented

A trait or approach emphasizing teamwork, collaboration, and prioritizing the goals and success of the group over individual achievements.

Incentive Systems

Structured programs designed to encourage and reward specific behaviors among a group of individuals.

Profit Sharing

A company's practice of distributing a portion of its earnings to employees, usually based on the company's profitability, as an incentive and reward for their contributions.