Indicators of Possible Exposure of Accumulated Earning Tax Risk Would

question 86

Multiple Choice

Indicators of possible exposure of accumulated earning tax risk would include all of the following except

• A)substantial marketable securities held by the corporation.
• B)loans to shareholders.
• C)limited dividend paying history.
• D)All of the above factors could indicate retention of earnings beyond business needs.

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Definitions:

Divine Madness

A state of being believed to be inspired by divine forces, often associated with creativity or religious ecstasy.

Prophetic Gifts

Spiritual endowments in some religious traditions that enable individuals to receive and communicate messages from the divine or supernatural realm.

Bodily Humors

An ancient and obsolete medical theory that believed human health and temperament were governed by four fluids in the body: blood, phlegm, black bile, and yellow bile.

Hippocrates

Often referred to as the "Father of Medicine," an ancient Greek physician who set standards for ethical medical practice.