Which of the Following Statements Is True of a Subchapter

question 3

Multiple Choice

Which of the following statements is true of a Subchapter S corporation?

• A) It is taxed like a publicly held corporation.
• B) It is organized and operated as a general partnership.
• C) It is taxed like a partnership.
• D) It is organized and operated as a limited liability partnership.

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Definitions:

Amortization Expense

The systematic and gradual charge to expense of the cost of an intangible asset over its useful life.

Functional Currency

A redefined definition: The currency that a business uses for most of its transactions, reporting, and financial statements.

Capital Assets

Long-term tangible or intangible assets used in operations of a business that are not intended for sale in the regular course of business.

Exchange Rates

The rate at which one currency can be exchanged for another currency.