The Period for Filing a Claim for Refund Is Extended

question 26

Multiple Choice

The period for filing a claim for refund is extended when overpayment results from:

• A) Overstatement of incomes in the income statement.
• B) Ignorance of tax laws on the part of return preparers.
• C) Negligence on the part of return preparer while filing returns.
• D) Carryback of a net operating loss, capital loss or certain credits.

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Definitions:

Supplier

An individual or company that provides goods or services to another entity under terms specified in a contract.

Asset Turnover

A financial metric assessing how well a company utilizes its assets to produce sales income.

Working Capital

A measure of a company’s liquidity; computed as current assets minus current liabilities.

Note Payable

A written agreement in which one party agrees to pay another party a definite sum of money at a future date or on demand.