Match Each Term with the Correct Statement Below

question 88

Multiple Choice

Match each term with the correct statement below.
-Fiscal year

• A)Allocates income, losses, and deductions to its owners for inclusion in their personal returns.
• B)Each tax unit must keep separate records and report the results of its operations separate and apart from other tax units.
• C)Income from services must be taxed to the taxpayer rendering the service and income from property must be taxed to the owner of the property.
• D)Any tax year that ends on the last day of a month other than December.
• E)All taxpayers must report the results of their operations on an annual basis.
• F)A tax year that ends on December 31.
• G)A tax entity that is liable for the payment of tax.

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Definitions:

Unused Capacity

The available production or service capability that is not being utilized by a business.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual jobs or products based on a certain activity base, such as machine hours or labor hours.

Automated Lathe

A machine used in the manufacturing process that is controlled by a computer, improving precision and efficiency in producing parts.

Capacity

The highest amount of production a company can maintain during a specific time frame under standard conditions.