Which of the Following Statements Regarding a 52-53 Week Tax

question 35

Multiple Choice

Which of the following statements regarding a 52-53 week tax year is correct?

• A) The year-end must be the same day of the week in all years.
• B) The year cannot contain more than 366 calendar days.
• C) Every four years, there will be only 51 weeks.
• D) The year cannot end on a Sunday.
• E) None of the above.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Write-off

The process of recognizing that a portion of a company's inventory or accounts receivable is no longer valuable and removing it from the financial statements.

Service Charge

A fee collected for services provided, often added to the base cost of services in industries such as hospitality, banking, and utilities.

Credit Card

A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.