Exemptions and Deductions Are Used

question 105

Multiple Choice

Exemptions and deductions are used

• A)to add to taxes that must be paid.
• B)by taxpayers to reduce the amount of income subject to tax.
• C)to determine the type of tax structure.
• D)to determine what items are subject to sales taxes.

---

Definitions:

First Year

Pertains to the initial period of time, typically referring to the first 12 months, in various contexts such as a company's operations, an educational program, or an individual's experience in a new role.

Business

Business refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Financial Documents

Official records that detail an entity’s financial activities and condition, such as balance sheets, income statements, and tax returns.