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If an exempt organization is a corporation, the tax on unrelated business taxable income is

(A)Computed at corporate income tax rates.

(B)Computed at rates applicable to trusts.

(C)Credited against the tax on recognized capital gains.


The Correct Answer

When capital is increased in the double-entry method of accounting, the result is: Mark one answer:

(A)A credit (B)A debit (C)It is dependent on the situation (D)There is not enough information to determine the answer. (E)None of the above

Correct Answer: A

GAAP refers to: Mark one answer:

(A)General accounting assistance program (B)Generally accepted accounting principles (C)Generally acceptable account procedures (D)The theory that accounting and the general public look at financial statements differently

Correct Answer: B

Jenny's Bakery recently delivered a bad batch of cakes to a local restaurant. Jenny quickly refunded the cost of the cakes to the restaurant. Her accountant made a _____ to her Refunds of Sales account for this transaction:

(A)note (B)debit (C)credit (D)cost adjustment (E)deposit

Correct Answer: B

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