Regular Corporations Are Free to Choose Any Fiscal or Calendar

question 24

True/False

Regular corporations are free to choose any fiscal or calendar year as their tax year.

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Definitions:

Long-Term Investment

Investments held for an extended period, usually more than one year, with the intention of gaining significant returns over time.

Dividends Received

Income earned from investments in the form of payments distributed by a corporation to its shareholders.

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.