Which of the Following Is Not Permitted an Accumulated Earnings

question 35

Multiple Choice

Which of the following is not permitted an accumulated earnings credit based on reasonable needs of the business?

• A)an operating company
• B)an investment company
• C)an incorporated engineer
• D)All of the above are permitted a credit based on reasonable business needs.

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Definitions:

Code Letter

A specific sequence of characters used for classification or identification purposes, often secret or abbreviated.

Code Letter

A symbol or abbreviation used to represent an item, category, or instruction in a system of classification or identification.

FOB

Free On Board, a term used in shipping to indicate who is responsible for payment of transportation and insurance.

Freight

The charge paid for the transportation of goods, typically by sea, air, or land.