Match Each Term with the Correct Statement Below

question 32

Multiple Choice

Match each term with the correct statement below.
-Assignment of Income

• A)Allocates income, losses, and deductions to its owners for inclusion in their personal returns.
• B)Each tax unit must keep separate records and report the results of its operations separate and apart from other tax units.
• C)Income from services must be taxed to the taxpayer rendering the service and income from property must be taxed to the owner of the property.
• D)Any tax year that ends on the last day of a month other than December.
• E)All taxpayers must report the results of their operations on an annual basis.
• F)A tax year that ends on December 31.
• G)A tax entity that is liable for the payment of tax.

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Definitions:

Fixed Costs

Fixed costs are business expenses that do not change with the level of output or sales, such as rent or salaries.

Variable Costs

Costs that vary directly with the level of production or service activity within a business.

Net Income

The total amount of profit left over after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced, including materials, labor, and energy costs.