Which One of the Following Statements Is False

question 143

Multiple Choice

Which one of the following statements is false?

• A) Most countries that trade with the U.S. do not impose a double tax on dividends.
• B) Tax proposals that include corporate integration would eliminate the double tax on dividends.
• C) The double tax on dividends may make corporations more financially vulnerable during economic downturns.
• D) Many of the arguments in support of the double tax on dividends relate to fairness.
• E) None of the above.

---

Definitions:

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of its core operation excluding overhead.

LIFO

"Last In, First Out," an inventory valuation method where the last items added to inventory are the first to be used or sold.

Periodic Inventory System

An inventory accounting system where the inventory on hand is determined by physical count at the end of the accounting period, used to update inventory records and cost of goods sold.

Ending Inventory

The total value of all inventory in stock at the end of an accounting period, calculated before new inventory purchases are added.