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Business

Accounting

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Whilst looking at the income tax returns applicable to corporate entities, Jackie was curious why there is a need for tax-exempt entities to still file for their ITR given that they are already exempted.

Being a lamb to your friend, which of the following would best provide reason for such?

A. for assessment of the correctness of mathematical computations made by taxpayer

B. for comparison of figures reported on their financial statements

C. for conversion of the supposed tax burden to filing burden

D. for possible tax exposures from the conduct of unrelated activities

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