Match each term with the correct statement below.
-Entity Concept
A)Allocates income, losses, and deductions to its owners for inclusion in their personal returns.
B)Each tax unit must keep separate records and report the results of its operations separate and apart from other tax units.
C)Income from services must be taxed to the taxpayer rendering the service and income from property must be taxed to the owner of the property.
D)Any tax year that ends on the last day of a month other than December.
E)All taxpayers must report the results of their operations on an annual basis.
F)A tax year that ends on December 31.
G)A tax entity that is liable for the payment of tax.

Question

Quizplus · Accepted Answer

The Entity Concept in taxation refers to the principle that each tax unit (entity) must maintain separate records and report its operations independently from other entities. This ensures clear accountability and tax compliance for each distinct legal or economic entity.

Match Each Term with the Correct Statement Below