An Individual Taxpayer Uses a Fiscal Year of March 1

question 47

True/False

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

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Definitions:

Operating Activities

Operating activities refer to the day-to-day functions of a business involved in producing and selling its goods or services, which are reflected in its cash flow.

Financing Activities

Transactions that involve raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt.

Statement of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.