Which of the Following Statements Is INCORRECT Regarding Effective Dates

question 46

Multiple Choice

Which of the following statements is INCORRECT regarding effective dates in the Internal Revenue Code:

• A) All sections of a new tax law go into effect at the same time.
• B) New Code provisions may not go into effect immediately upon adoption by Congress.
• C) Some effective dates can precede passage of the act.
• D) All of the above are correct.

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Definitions:

Cash Flow Statement

A financial statement that shows the flow of cash in and out of a business during a specific period, highlighting operating, investing, and financing activities.

Accumulated Depreciation

The cumulative total of all depreciation charges applied to an asset from the time it was first used.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends and capital appreciation.

Depreciation Expense

The portion of the cost of a fixed asset that is systematically allocated as an expense to each period that the asset is used and generates revenue.