Which of the Following Are Consequences of Tax-Exempt Status

question 35

Multiple Choice

Which of the following are consequences of tax-exempt status?

• A)Not necessary to file a Federal income tax return.
• B)Generally exempt from Federal income tax.
• C)Contributions to the exempt organization are deductible by the donor.
• D)Only b.and c.
• E)a., b., and c.

---

Definitions:

Compounded Quarterly

Involves calculating interest on an investment or loan every three months, then adding that interest to the principal amount; thus, the interest for the next period is calculated on the principal plus previously accumulated interest.

Monthly Payment

A specified amount of money paid at regular monthly intervals, often related to loans or leases.

Car

A wheeled motor vehicle used for transportation, typically designed to seat one to eight people.

Compounded Quarterly

Calculation of interest on an investment or loan on a quarterly basis, leading to interest being added to the principal, which then earns additional interest.