Taxation of Individuals & Business Entities Chapter 1 with correct questions and answers.

Taxation of Individuals
and Business Entities
CH. 9 SB with correct
questions and
answers.

,
, Schedule C tax form used to report taxable income - correct ans:Sole
Proprietorship



Form 1065 tax form used to report taxable income - correct ans:Partnerships



Form 1120s tax form used to report taxable income - correct ans:S
corporations



Form 1120 tax form used to report taxable income - correct ans:C
corporations



Which of the following choices is INCORRECT when defining the gross income
of a business?



A. Revenues from renting property is included in gross profit for rental
businesses.

B. Gross income from a business includes gross profit from inventory sales.

C. Gross income for a business may be calculated as sales less returns and
discounts.

D. Gross income for a service business can be calculated as income from
services provided. - correct ans:C. Gross income for a business may be
calculated as sales less returns and discounts.



Gross income for a business may be calculated as - correct ans:sales less
returns and discounts



Which one of the following terms does the Internal Revenue Code use to
describe deductible business expenses?