Identify Which of the Following Statements Is True

question 22

Multiple Choice

Identify which of the following statements is true.

• A) Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
• B) The natural business year for fiscal- year election purposes is any tax year that ends within six months after the peak period of business.
• C) A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
• D) All of the above are false.

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Definitions:

Social-cognitive Theory

A perspective stating that learning occurs in a social context and that much of what is learned is gained through observation.

Hypnosis

A state of focused attention, reduced peripheral awareness, and increased suggestibility, often used for therapeutic purposes.

Dissociate

To disconnect or detach one's thoughts, feelings, or memories from conscious awareness.

Autosuggestion

A psychological technique that involves self-induced suggestions and affirmations to change behavior or improve wellbeing.