Which of the Following Statements Is Incorrect

question 70

Multiple Choice

Which of the following statements is incorrect?

• A)Some corporations can use the cash-basis of accounting.
• B)A calendar year corporate tax return is due 3½ months after the end of the fiscal year.
• C)Corporations that own foreign subsidiaries cannot file a Form 1120.
• D)A corporation can choose a fiscal year-end of its choice when filing its first tax return.

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Definitions:

Straight-line Method

A technique in depreciation where the asset's cost is apportioned equally over its projected useful life.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its operational lifespan, utilized to determine depreciation.

Lump-sum

A single payment made at a particular time, as opposed to several smaller installment payments.

Individual Assets

Specific items of property owned by an individual or entity, including tangible and intangible assets.