Which of the Following Statements Is Not True Regarding the Credit

question 121

Multiple Choice

Which of the following statements is not true regarding the credit for the elderly or the disabled?

• A)Base amount for the credit calculation for a single individual is $5,000.
• B)Base amount for the credit calculation for joint returns is $5,000.
• C)The maximum allowable credit is based on 15% of the taxpayer's base amount.
• D)Base amount for the credit calculation for a joint individual where only one spouse qualifies is $5,000.

---

Definitions:

Perpetual Inventory System

An inventory management method where inventory quantities and costs are updated continuously with each sale or purchase.

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Credit To Inventory

An accounting entry that increases the inventory asset account due to purchases on credit.

Perpetual Inventory System

An automated inventory management system which promptly registers inventory transactions during sales or purchases through digital point-of-sale systems and enterprise asset management software.