Which of the Following Statements Regarding a 52-53 Week Tax

question 49

Multiple Choice

Which of the following statements regarding a 52-53 week tax year is not correct?

• A)The year-end must be the same day of the week in all years.
• B)Some tax years will include more than 366 calendar days.
• C)Whether the particular tax year includes 52 weeks or 53 weeks is not elective.
• D)All of the above are correct.
• E)None of the above is correct.

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Definitions:

Statement of Cash Flows

A financial documentation that illustrates the effect of changes in balance sheet accounts and profit on cash and cash equivalents, dividing the analysis into categories of operating, investing, and financing activities.

Noncash Investing

Investing activities that do not involve the immediate outflow of cash, such as acquiring assets through finance leases.

Financing Activities

Financing activities are transactions involving changes in the size and composition of the equity and borrowings of a company.

Statement of Cash Flows Worksheet

A detailed working paper used in the preparation of the statement of cash flows that reconciles beginning and ending cash balances by analyzing changes in all other accounts.