Identify Which of the Following Statements Is True

question 96

Multiple Choice

Identify which of the following statements is true.

• A) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
• B) A partnership can elect to be taxed as a corporation under the check- the- box regulations. As a corporation, an S election can be made.
• C) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
• D) All of the above are true.

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Definitions:

Journal Entry

A record of the transactions that occur within a company, entered into the accounting ledger reflecting debits and credits in order to maintain accurate financial statements.

Chart Of Accounts

An organized list of all accounts in the general ledger of a company, categorizing assets, liabilities, equity, revenues, and expenses.

Numbering System

An organized scheme for assigning unique identifiers to entities within a specific context or system.

Cash Account

A financial account that tracks the flow of cash transactions, including both receipts and disbursements.