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:

Adaptation

The ability of an organism, individual, or system to adjust or change in response to new conditions or environments.

External Environment

External forces, conditions, and stakeholders that affect an organization's performance and strategies.

Nature Of Position

The inherent characteristics, duties, and responsibilities attached to a specific job or role within an organization.

Type Of Organization

Refers to the classification of organizations based on their purposes, structures, and operations, such as nonprofit, for-profit, governmental, or voluntary.