Which of the Following Is a Prohibited Activity for a Tax-Exempt

question 77

Multiple Choice

Which of the following is a prohibited activity for a Tax-exempt Organization?

• A) Make a Profit.
• B) File a tax return.
• C) Give money away.
• D) Make financial contributions to a political candidate.

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Definitions:

Account Names

Specific titles given to accounts that reflect the nature of the transactions they represent in the accounting records.

Account Title

The name given to an account that reflects the type of transaction it represents, such as "Sales Revenue" or "Accounts Payable."

Ledger

A comprehensive set of accounts that records all financial transactions of a business, organized within a book or digital system.