Sole Proprietorships Must Use the Same Tax Year as the Proprietor

question 22

True/False

Sole proprietorships must use the same tax year as the proprietor of the business.

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Definitions:

Process Cost Accounting System

A method of accounting used by companies that produce similar or identical units of product in batches employing a consistent process.

Continuous Production

A manufacturing process where production runs 24 hours a day, typically 7 days a week, without interruption.

Like Units

Units of product that are identical or nearly identical in their functions or physical properties.

Materials Requisition

The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.