Which of the Following Statements Is Incorrect

question 78

Multiple Choice

Which of the following statements is incorrect?

• A) AMTI calculated under the direct and indirect methods produces the same amount.
• B) AMTI calculated under the direct and the indirect methods produces different amounts.
• C) The tax forms use the direct method to calculate the AMT.
• D) Only b. and c. are incorrect.
• E) a., b., and c. are incorrect.

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Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records to adjust income and expense accounts so they comply with the accrual concept.

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.