Which of the Following Statements Is False Regarding Corporate Estimated

question 63

Multiple Choice

Which of the following statements is false regarding corporate estimated tax payments?

• A) The due dates for estimated tax payments are the 15^th day of the 4^th, 6^th, 9^th, and 12^th months of the corporation's tax year.
• B) Corporations must pay estimated taxes only if they have a federal income tax liability greater than $1,000 (including the alternative minimum tax).
• C) Even though a corporation extends its tax return it still must pay its tax liability for the year by two and one half months after year end.
• D) Corporations using the annualized income method for determining estimated tax payments project their tax liability for the year based on income from the first, second, and third quarters.

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Definitions:

Accounts Payable

Liabilities reflecting money owed by a business to its suppliers or creditors for goods and services purchased on credit.

Creditor

An individual or institution that lends money or extends credit to another entity.

Interim Statements

Financial statements prepared for a period shorter than a financial year, typically quarterly or semi-annually, to provide a more immediate financial status of the company.

Insurance

A financial product that provides protection against financial losses from specified risks, such as accidents, theft, or natural disasters.