Distributions by a Corporation to Its Shareholders Are Presumed to Be

question 14

True/False

Distributions by a corporation to its shareholders are presumed to be a dividend unless the parties can prove otherwise.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Buildings

Physical structures owned by a business that are used for operational purposes, considered long-term assets on the balance sheet.

Other Income/Expense

Revenue or costs that are not related to a company's main business operations, such as gains or losses from investments or foreign exchange.

Loss

A financial term referring to the condition where expenses exceed revenues, leading to a negative income.