Regarding the Rules Applicable to Filing of Income Tax Returns

question 56

Multiple Choice

Regarding the rules applicable to filing of income tax returns, which, if any, of the following is an incorrect statement:

• A)Married persons who file joint returns cannot later (after the due date of the return) substitute separate returns.
• B)Married persons who file separate returns can later (after the due date of the return) substitute a joint return.
• C)The usual test as to when a taxpayer must file a return is based on the total of the following: personal exemption + basic standard deduction + both additional standard deductions.
• D)Special filing requirement rules exist for taxpayers who are claimed as dependents of another.
• E)None of the above.

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Definitions:

Adjusted Trial Balance

A trial balance that has been adjusted for any journal entries or corrections, ensuring the accuracy of financial statements.

Net Income

Net income of the company, which is what remains after deducting taxes, expenses, and other costs from its total revenue.

Period

In finance and business, a period refers to a specific duration of time considered for accounting, reporting, or evaluation purposes.

Accounts

A record within an accounting system that keeps track of financial transactions of a specific type, such as assets, liabilities, revenue, expenses, and equity.