Which of the Following Correctly Reflects Current Rules Regarding Estimated

question 97

Multiple Choice

Which of the following correctly reflects current rules regarding estimated tax payments for individuals?

• A)Employees are not subject to the estimated tax payment provisions.
• B)Any penalty imposed for underpayment is deductible for income tax purposes.
• C)Married taxpayers may not make joint estimated tax payments unless they file a joint income tax return.
• D)No quarterly payments are required if the taxpayer's estimated tax is under $1,000.
• E)None of these.

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.

Direct Method

A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.

Indirect Method

An approach used in cash flow statements where net income is adjusted for non-cash transactions, deferred revenues, and expenses to calculate cash flow from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.